If a marketing manager uses the task method to budget for marketing promotions, are competitor's promotions spending levels ignored?

The task method is a technique used by firms to allocate funds to the marketing department based on specific objective instead of basing the funds on the sale revenue. A budget is a financial plan on how money is going to be raised and spend.

If a marketing manager employs the task technique (method) to budget for advertising promotions, the competitor's promotions expenditure levels can be overlooked. This is because the firm may be new in marketing or may have fewer funds. If they compare their budget spending level to the competitor's budget, it may cause overuse or underuse of the funds since they may spend more than what the company can afford or very spend little, which may not be sufficient. Hence, it may have adverse effects on the business. So they should ignore the spending level of their competitors to avoid overspending the fund allocated to the department.

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