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Budgeting is a Plan Advertising budget is a plan for the companys future advertising Advertising Budget Process: The preparation of an advertising budget generally determines the size of advertising expenditure. How much should be spent on advertising? The advertising budget is prepared by the advertising manager of the company. The advertising budget thus prepared by the advertising manager is finally presented to the top management through the chief of the marketing division for approval. During the execution of the budget, the advertising manager has to exercise monitoring control so that the funds that have been allocated may be spent in most economical manner.
Advertising budget exercies: i. The advertising input in order to achieve agreed marketing objectives? ii. Amount of money one can afford to spend on advertising iii.Apportionment of the total advertising expenses iv. Advertising budget allocation on new products?
Percentage-of-sales Method
It directly relates advertising expenditure to sales In the unit-of-sales method, a specific amount of rupees is allocated to the advertising budget for each unit sold. This is, basically, a fixed-guideline approach to the advertising budget. The method may also be referred to as the fixed-sum-per-unitof-product method.