Methods to determine Promotional Budget
What are the methods to determine Promotional Budget? Explain in brief.
Expert
Methods to Determine Promotional Budget:
• Affordable Budget: setting the promotional budget at the level the management can afford. Often used by small businesses, the starting point is after allocation of capital outlays and operating expenses from the revenue the remaining is allocated for advertisement. However the method completely ignores the effect of promotion on sales and may lead to over or under promotional spending.
• Percentage of Sales Method: is setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of sales price. Simple to calculate, it helps the management to link relationships between promotion spending, selling price and profit per unit. However it wrongly views sales as the cause of promotion rather than the result. Yearly budget variations causes problem with this method as the method does not provide basis selecting the percentage use.
• Competitive-Parity Method: is setting the promotional budget as per the competitor’s outlay. This method helps in preventing the promotional wars as each firm tries to have equal share of the market. But this justification has not been helpful for explaining the competitor’s spending.
• Objective and Task Method: involves developing the promotion budget by defining the promotional objectives, determining the tasks that would help in achieving these objectives, estimating the costs of performing these tasks. The sum of the above costs is the proposed promotion budget. However it is a difficult method to use.
FERA stands for The Federal Emergency Relief Administration. The program was renamed as a direct relief operation in Roosevelt Administration. It was a form of an unemployment insurance.
Normal 0 false false
Pooled Money Investment Board (PMIB): The board included of the Director of Finance, State Treasurer, and the State Controller, the aim of which is to design an efficient cash management and investment program, employing all monies fl
If a stock with a standard deviation of 7% is combined with a stock that has a standard deviation of 5%, what will the standard deviation of the portfolio be? A) 6%B) Greater than 6%C) Less than 6%D) There is not
Special Fund for Economic Uncertainties: It is a fund in the General Fund (that is, a similar reserve is involved in each special fund) authorized by the statute and Budget Act Control Section 12.30 to offer for emergency situations.
Do mergers encourage the formation of new banks? Yes. The increase in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the similar period. A study conducted through the Federal Reserve Bank of
i want to write final state report. My state is Texas.
Disadvantages of the Finger print technique: Health concerns while touching the sensor which is being touched by many number of individuals. Sometimes due to age and occupation may cause some diff
Describe some of the government requirements imposed onto a public corporation which are not imposed on a private, intimately held corporation? Public corporations ought to submit audited financial statements to the government for release to the
18,76,764
1952377 Asked
3,689
Active Tutors
1429208
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!