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, [...]
This article throws light upon the top nine methods for determining budget appropriation. The methods are: 1. The Percentage of Sales Method 2. Unit of Sales Method 3. Competitive Parity Method 4. Objective Task Method 5. Arbitrary Allocation Method 6. The Affordable Method 7. Sales Response & Decay Model 8. Communication Stage Model 9. Pay Out Planning Method. 1. The [...]