Planning of Advertizing Budgets

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Planning of Advertising Budget:

Different corporations use different methods of planning the advertising budget. However, there are a few important points:
a. The appropriation may be regarded as an investment in maintaining or developing goodwill.
b. Budget the sales for forthcoming periods, and an economic percentage of these may be used for advertising.
c. Budget the sales in terms of units over the forthcoming period. A cost is allotted to the units, and this cost is included in the overall price of the product.
d. A margin between manufacturing costs and price to distributers may be calculated, and included in the price of the product.
e. Scientific analysis may also be used to calculate the advertising budget. This method may involve complete coordination of production, sales, and advertising.

Advertising campaign planning:

An advertising campaign involves studying the market and the potential customer. An advertising plan is divided into a series of the following heads:
1. The organization and its role in the development of the product.
2. The product.
3. The Market.
4. The marketing profile of the previous years.
5. Using data from previous market and motivation research.
6. Analyzing the competitor's advertising programme.
7. The consumer and the copy platform.
8. The advertising budget - analyzed.
9. The selection of the media used for advertising.

Additional Readings:

1. Functions and Elements of Growth in Marketing Management
2. Marketing Organization and Functions of a Marketing Manager
3. Functions and Essentials of New Project Planning
4. Types and Various Stages of Market Studies
5. Naming Products and Name Testing Research
6. Planning of Advertizing Budgets
7. Basic Steps of Test Market Studies
8. Trade through Selected Agencies
9. Price and Motivation of Marketing
10. Marketing Functions at different levels of Development
11. Elements of a Marketing Mix
12. Advantages and Disadvantages of Branding
13. Packaging and Sales Promotion
14. New Product Development Strategy
15. Screening a New Product

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Page accessed on: July 29, 2010, 11:32 am.

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