This article throws light upon the top nine factors influencing the advertising budget allocation. The factors are: 1. Marketing Mix of the Company 2. The Sales Forecast 3. Affordability 4. The Product Life Cycle 5. Quality of the Campaign 6. Level of Competition 7. The Budgeting Cycle 8. Contingency Planning 9. Type of the Product. Factor # 1. Marketing Mix [...]
The advertising budget is primarily a blue print of a projected advertising plan of action by an organisation for a definite period of time. Its fundamental purpose is to aid in securing control over advertising and is accompanied by comparing actual attainments against the projected allocation and using it as a yardstick in determining the effective use of advertising. Advertising [...]
Today, we see that the companies are spending crores of rupees (refer the big spenders) on advertising compaign. No doubt growing competition is a big motivator. Besides that media fragmentation and the rising clutter are the other reasons that lead to the growth of advertising expenditure of companies exponentially over the past couple of years. But the important question is, [...]