advertising budgeting methods, factors p

ad budget

2. Advertisement budget is a statement of
future estimated expenditures for ad efforts.
It is converting the advertising plan into
monetary value.
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3. An advertising budget is a plan that involves
determining the total appropriation and
allocation of monetary resources for various
activities in conceiving, developing, releasing
an advertising campaign.
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4. An advertising appropriation is the total
amount granted or earmarked by the top
management for advertising.
On the other hand, advertising budget is one
that is divided into amounts set aside for
specific activities.
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5. Ad construction cost
Media cost
Ad agency cost
Ad department cost
Ad research cost
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6. Budget preparation
Budget presentation
Budget implementation
Budget control
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7. The percentage of sales method
Objective and task method
Competitive parity method
Affordability method
Incremental method
Market share method
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8. Merits
It is simple.
It works on affordability
It is consistent
Demerits
Wrong stressing
It is static in approach
It ignores long range planning
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9. Merits
It is objective based
It is review based
It is individualistic
Demerits
It is irrelevant
Objectives cannot be translated into tasks
It is unscientific
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10. Merits
It respects the superiors
It kills competitive wars
It is simple
Demerits
It is not logical
It is a misfit
It is difficult to get competitors’ information
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11. Merits
It is practical
It is simple
It is flexible
Demerits
It overlooks opportunities
It is short-sighted
It ignores the ability of advertising
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12. Merits
Simplicity
Consistency and operational stability
Funding stability
Reduces internal rivalry
Demerits
Promotes unnecessary spending
Discourages innovation
Fails to account for changes and external
factors
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13. Merit
It is simple as compared to other advertising
budget methods.
Demerit
The method is based on a vague basis of
market share, whereas companies' own
advertising and marketing objectives are
ignored.
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14. Top-down approach
Bottom-up approach
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15. Financial condition
Objectives of advertising
Nature of Product
Nature of customer
Stage of product life cycle
Advertising strategies
Top management philosophy
Competitors’ budget size
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16. ?
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17. Thank you
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