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An Advertising Budget refers to the amount of money allocated towards We don't spam. We Educate.
advertising of a brand or product.
While developing an advertising strategy, it is empirical to set advertising CHOOSE YOUR SUBJECT
objectives which are significantly influenced by the advertising budget.
Advertising objectives are important for decision making and to have a Advertising Management (20)
point of reference or standard against which the results can be measured. Articles (240)
A business may choose a sales objectives or communication objectives for Banking and Insurance (10)
the purpose of developing an advertising budget. Blog (35)
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3/26/2020 Advertising Budget - Objectives, Approaches, Methods - BBA|mantra
may be changed from time to time depending upon the volume of sales Entrepreneurship (11)
Increase number of customers who prefer company’s brand over Organizational Behaviour (7)
competing brands Personal Finance (2)
Principles of Management (9)
Show Your Ads on TikTok
Project Management (11)
The various factors that have to be studied before setting the advertising
budget are – LED SIGN BOARD CONSULTANTS - LED SIGN BOA
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The Theoretical basis for creating an advertising budget is Economic Leadership Styles – Types of Leadership
Styles
Marginal Analysis. According to Economic Marginal Analysis a firm should
March 27, 2018
continue to increase its advertising budget for a particular brand or for a
certain target market as long as the (MR) Marginal Revenue exceeds the Inventory, Inventory Control – Theory Notes
Incremental Expenditure (IE). However this basis takes into account the January 13, 2018
Sales are a direct result of advertising and the deviation can be January 2, 2018
measured accurately
Marketing Information System –
Components, Importance
Due to these assumptions this model is rarely used as it is not practical to
December 20, 2017
that assume advertising alone determine sales as there are many other
environmental factors that affect sales.
SIGN BOARD WALA - NAME PLATES CONSULTAN
Most advertiser support one of two models of advertising to sales response sign board wala
function namely the Concave downward function or the S-shaped function.
Budget, Budgeting, Budgetary Control
December 20, 2017
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Advertisers must advertise and spend in the area of rising curves where
maximum return on advertising expenditure can be accomplished.
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It is a simple method
Whatever is left out of the financial budget is allocated to advertising
After making all business expenditures the amount left is allocated to
advertising
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The basis of budget allocation is the total sale of brand or product. It may
be:
A fixed percentage of last year’s sales figure is allocated as the budget.
A fixed percentage of projected sales figures of the next year
A fixed amount of the unit product cost is taken as advertising expense
and multiplied by the number of projected sales unit.
Advantages
Disadvantages
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Disadvantages
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In this method the selling objectives and budget decision are linked and
considered simultaneously. It involves –
Advantages
Disadvantages
It is difficult to implement
It requires managerial involvement and high skills
It attempts to introduce variables such as awareness, knowledge, attitude
formation etc.
It is difficult to estimate all costs and determine all tasks necessary to
achieve the set objectives
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Advantages
Disadvantages
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Disadvantages
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