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.
Normal 0 false false
Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios. While a business's debt ratios ri
What does it mean while the U.S. dollar weakens in the foreign exchange market? While the U.S. dollar weakens in the foreign exchange market one U.S. dollar purchase fewer units of another country's currency. It costs more U.S. dollars to purch
Tort: It is a civil wrong, other than a breach of contract, for which the court awards indemnity. The traditional torts comprise malpractice, negligence, assault and battery. Lately, torts have been widely expanded such that the interference with a co
Policy Adjustments: The changes to existing law or Administration policies. Such adjustments need action by the Governor and/or Legislature and change the workload budget.
Question 1 A. What per visit price must be set for the service to break even? To earn an annual profit of $100,000? (10,000 * 5.00 - $500,000 - 50,000 = 0 Q : Define Executive Order Executive Order Executive Order (EO): It is a budget document, issued by the Department of Finance, asking for the State Controller’s Office to make an adjustment in their accounts. The adjustments are usually authorized by the Budget Act provision language, Bu
Executive Order (EO): It is a budget document, issued by the Department of Finance, asking for the State Controller’s Office to make an adjustment in their accounts. The adjustments are usually authorized by the Budget Act provision language, Bu
Define the term State Fiscal Year: This is the period beginning from July 1 and continuing through the subsequent June 30.
Advantages of finger prints biometric technique: Easy to use and very little training is used No space is required for the installation Large amounts of existing data to allow background list check Has proven effect
Explain the term Balance Available: In regards to a fund, it is the surplus of resources over uses. For budgeting aims, the balance accessible in a fund condition is the carry-in balance, net of any preceding year adjustments, plus revenues and transf
18,76,764
1941370 Asked
3,689
Active Tutors
1433185
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!