The importance of marketing budget

Which type of promotions should be used

public relations and sponsorship

BY PRITHVI RAJ
 What is a marketing budget

 A marketing budget is a financial plan

for the marketing of a product or
product range for a specified range of
time
 The importance of a marketing budget

 The marketing budget specifies how much is available to the market in

terms of the product so that the marketing department will know how
much to spend.
 The size of the marketing budget depends on the size of the business. If
the marketing budget is very small some business cannot afford to
advertise products. This means advertisement thorough magazines and
television cold not be possible. If the marketing budget was to increase
then the magazine and television advertisements would be possible.
 The need for cost effectiveness is very crucial in terms of spending in the
marketing budget. A business will need to compare costs of advertising
with the increase in expected sales.
 Small firms in a market generally find it difficult to compete with larger
firms because of the marketing budget which is available to them
 WHICH TYPE OF PROMOTIONS SHOULD BE
USED

 The stage of the product life cycle: if a new product was

just launched into the market and the advertising may be
more informative. If the product is well established and at
maturity then the advertising may be more persuasive
 The nature of the product: If the product is a producer
good then the type of promotion that would be used will be
different compared to the promotions for consumer goods.
The sales of a producer goods to other business for
example a machine to wrap perfume will be bought in
bulk by other companies if a discount is given. The
advertisements used for producer goods will be more
informative compared to consumer goods as the
advertisement will be more persuasive for example the
machine advertisements will be informative while the
perfume advertisement will be persuasive.
 Continuation of the previous slide

 The nature of the target market: the nature of the

market depends on the location and too who is the the
product being sold. If the market is a local, national ,
international. For each location a different form of
advertisement is used. If the product is specialized
example water skis then the most effective form of
communication would be television. If the product is
targeting a younger population then social media is the
best form of advertisement.
PUBLIC RELATIONS AND SPONSORSHIP

In order to promote a product and to have a good

name for a business / the product. The business will
sponsor events for example football matches, cricket
tournaments. The employees or the owners of the
company will take part in a sponsored activity to raise
awareness.
The business do this in order to raise the public
awareness of the company and its products.
Example of sponsorships
QUESTIONS
Thank you