Competitive-Parity Method

Published by MBA Skool Team, Last Updated: February 01, 2013

What is Competitive-Parity Method?

It is one of the techniques to establish the total marketing communication budget. The method takes the total budget to be allocated for marketing communication at par with what competitors spend on the same.
Such a method is not considered very accurate because :

-          The competitor might not be knowing the right thing

-          The communication budget for a company might also differ from its competitor due to factors like company reputation, resource, opportunities and objectives

Example:

If HUL is using ‘x’ amount for promotions of its luxury soap brand, P&G will also allocate an amount almost equal to ‘x’ for a similar brand.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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