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Budget Elasticity
The degree to which the marketing budget can be stretched or contracted in response to market dynamics without significantly impacting effectiveness.
Implications
The degree to which a budget can be adjusted in response to changes in revenue, costs, or business priorities, allowing for flexibility in financial planning.
Example
Example: A company with high budget elasticity can easily shift funds from underperforming projects to new opportunities as market conditions change.
Related Terms
Different from fixed budgets, which are rigid and difficult to alter, elastic budgets are adaptable and can respond to changing circumstances.
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