Advertising and promotion budgeting

during volatile economic conditions

Factors influencing the level of decentralization in budgeting and its
relations to budget size and allocation
(Yunjae Cheong, Kihan Kim, Hyuksoo Kim, 2013)
202230375 우타마
Research Procedures

• Select a Problem
• Review existing research and theory
• Develop hypotheses or research questions
• Determine an appropriate methodology / research design
• Collect relevant data
• Analyze and interpret the results
• Present the results in an appropriate from
• Replicate the study (when necessary)
1.Problems

• Volatile Economic condition (Conditions)

• Advertising and promotion budgeting (Observed object)
Volatile economic conditions (Conditions)

• 2008 Housing Buble US >>> Economic Slows down

• Recession >> Buying Power Decrease
• Buying Power Decrease >> Company Marketing Budget Decrease
• However(Barwise 1999; Brenner 2009) suggest maintain or
increasing marketing budget during difficult economic times see
significant benefit.
Advertising and promotion budgeting
(Observed Object)

• Advertising spending + promotion spending = marketing spending

• Advertising spending = Ads + Media
• Promotion spending = all marketing expense exc Advertising
spending
• Spending from where??>>Budget
• Budget coming from where?? Budgeting prosess
Hung & West 1991; Prendergast, West & Shi
2006

• Budgeting Methods & Decentralisation (Bottom – Up & Up –

Bottom)

• Methods Table
2+3.Research Hypotheses and Questions base
on existing research and the theory

• Based on the review of research in advertising and marketing

• Hypotheses : H1-H9
• Questions : RQ 1 & RQ 2
4+5. Research Design and Collect relevant
Data

• Workflow Table
6+7. Analyze and interpret the results in
appropriate form

• Data findings + Results