If a company allocates its budget primarily to marketing rather than research an

If a company allocates its budget primarily to marketing rather than research and development, which of the following is a potential risk?

If a company allocates its budget primarily to marketing rather than research and development, which of the following is a potential risk?

Step 1: Understand the company's budget allocation. The company is spending more money on marketing than on research and development (R&D).
Step 2: Identify what marketing focuses on. Marketing is about promoting and selling products to customers.
Step 3: Identify what R&D focuses on. Research and development is about creating new products and improving existing ones.
Step 4: Consider the consequences of spending less on R&D. If the company does not invest in R&D, it may not innovate or create new products.
Step 5: Think about the long-term effects. Without innovation, the company may fall behind competitors and lose market relevance over time.
Step 6: Conclude that focusing too much on marketing can lead to neglecting innovation, which is a potential long-term risk.

No concepts available.