Advertising budget and steps in preparing advertising budget ppt

Advertising budget and steps in preparing advertising budget explantion

1. STEPSIN
PREPARING
ADVERTISING
BUDGET

2. ADVERTISING BUDGET
❑Advertising Budget
is the amount of
money which can
be or has to be
spent on
advertising of the
product/service
over a certain
period of time .

3. ❖STEPS IN PREPARING ADVERTISING
BUDGET -

4. 1. SETTING ADVERTISING
OBJECTIVE
❑Before deciding on advertising budget, the
advertising manager must be clear about
advertising objectives. These objectives
should be clearly defined in quantitative
terms so that amount of advertising budget
can be decided for achieving these
objectives . Main advertising objectives can
be to achieved the desired level of sales, to
enhance market share by specific
percentage, to increase awareness regarding
product and its uses ,to develop preference
of our product and to convince the
customer to buy the product .These
objective will help the advertising manager
to determine the size of ad-budget and to
allocate the ad budget .

5. 2. DETERMINING TASKS TO BE
PERFORMED TO ACHIEVE ADVERTISING
OBJECTIVES
❑After that identifying advertising
objectives , the next step is to
determine tasks, activities strategies ,
functions to be performed to achieve
the advertising objectives . These task
may include : selection of media ,
selection of advertising agency
,designing of advertisement copy
,deciding frequency of advertisement
timing of advertisement, quantum of
space to be taken in print media , etc .
This requires a good knowledge of
various activities of an effective
campaign.

6. 3. PREPARING ADVERTISING
BUDGET
After identifying various
activities to be done to achieve
advertising objectives the next
step is to find the cost of all such
activities the total cost of all such
activities is amount required for
advertising budget to keep the
budget flexible certain amount in
the form of provision for
constituency is added to the total
cost . Advertising budget is
prepared by advertising manager
or marketing manager.

7. 4 .APPROVAL OF
ADVERTISING BUDGET
❑After preparing it is approved by the top management through marketing
manager for necessary approval . In large organisations ,this proposed
budget is evaluated , reviewed and scrutinised by high-powered budget
committee before submitting it to the top management for final approval .
Budget committee will ensure that proposed budget will be effective enough
to achieve their advertising objectives. it will be ensure that all the required
activities to be achieved advertising objective has been covered and the dates
of various activities are competitive . After approval by budget committee , it
is presented before top management . Top management will see if the budget
is affordable, need -based and justified of management can impose ceiling on
proposed budget and send it back to budget committee face necessary review.
if it find the budget justified and with an affordable limit then it will
pass the budget .

8. 5 .ALLOCATION OF
ADVERTISING BUDGET
❑After the budget is approved by top management ,the next
step is to allocate it . Allocation means dividing the
advertising budget on different product and activities .
Advertising budget is allocated on various product lines ,
products items, media, sales territories etc . It involves
determining which market, product, media will receive how
much of the amount of funds appropriated. Advertising
allocation depend upon the company's policies
competitors strategies, nature of tasks required to
achieve advertising objectives ,stages of product life
cycle , market size , company promotional plan
,charges of advertising agency , etc . while allocating the
advertising budget to different activities / territories/products
, budget should have flexibility to accommodate sudden
changes in the market , competitor's strategies and change in
their components of marketing environment budget
allocation should not be very rigid advertising manager
should be authorised to make necessary modification in a
allocation of advertising budget

9. 6. MONITORING AND
CONTROLLING
❑After allocation of advertising budget
, it is essential to have an adequate
monitoring and control over it. In
controlling , actual expenditure is
compared with planned expenditure .
In case actual expenditure is more
than planned expenditure, then
corrective actions are taken and
responsibilities are fixed to ensure
cost control over advertising budget .
Monitoring and control of ad-budget
is necessary to make maximum
utilisation of funds, to reduce
wastage in ad-expenses and to
increase efficiency in various
advertising activities . Advertising
effectiveness is monitored and
evaluated in the light of the budget
appropriate .