advertisement budget

ADVERTISING BUDGET

Himalaya Publishing House

Foundations of Advertising Theory and Practice

S. A. Chunawalla & K. C. Sethia

Chapter 9Advertising Budget

Budgeting is a PlanAdvertising budget is a plan for the company’s future advertising

Advertising Budget Process: The preparation of an advertising budget generally determines the size of advertising expenditure. How much should be spent on advertising?The advertising budget is prepared by the advertising manager of the company. The advertising budget thus prepared by the advertising manager is finally presented to the top management through the chief of the marketing division for approval. During the execution of the budget, the advertising manager has to exercise monitoring control so that the funds that have been allocated may be spent in most economical manner.





Advertising budget exercies:

i. The advertising input in order to achieve agreed marketing objectives?

ii. Amount of money one can afford to spend on advertising

iii. Apportionment of the total advertising expenses

iv. Advertising budget allocation on new products?





Method of Determining Advertising Appropriation

i. Per cent of sales concept; and

ii. The advertising task or objectives.





Percentage-of-sales Method

It directly relates advertising expenditure to sales In the unit-of-sales method, a specific amount of

rupees is allocated to the advertising budget for each unit sold. This is, basically, a fixed-guideline approach to the advertising budget. The method may also be referred to as the fixed-sum-per-unit-of-product method.





Advertising Objective-and-Task Method

The objective-and-task approach to advertising budget is based on establishing advertising objectives and the tasks to be accomplished, and then determining the required size of the budget. For example, a company decides to increase the awareness of its brand in a certain market segment to 50 per cent. The crux of the method lies in defining these tasks and determining the type and quantity of advertising required.

advertisement budget

Documents