The document discusses advertising budgets, which allocate monetary resources for advertising campaigns. An advertising budget involves determining total funds and distributing them across various advertising activities. Budgets can be prepared using different methods, such as percentage of sales, objective-based tasks, competitive parity, affordability, return on investment, and incremental increases. The document compares merits and demerits of these methods and factors to consider for effective budget planning.

2.  Advertisement budget is a statement of
future estimated expenditures for ad efforts.
 It is converting the advertising plan into
monetary value.
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3.  An advertising budget is a plan that involves
determining the total appropriation and
allocation of monetary resources for various
activities in conceiving, developing, releasing
an advertising campaign.
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4.  An advertising appropriation is the total
amount granted or earmarked by the top
management for advertising.
 On the other hand, advertising budget is one
that is divided into amounts set aside for
specific activities.
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5.  Ad construction cost
 Media cost
 Ad agency cost
 Ad department cost
 Ad research cost
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6.  Budget preparation
 Budget presentation
 Budget implementation
 Budget control
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7.  The percentage of sales method
 Objective and task method
 Competitive parity method
 Affordability
 Incremental method
 Return on investment
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8.  Merits
 It is simple.
 It works on affordability
 It is consistent
 Demerits
 Wrong stressing
 It is static in approach
 It ignores long range planning
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9.  Merits
 It is objective based
 It is review based
 It is individualistic
 Demerits
 It is irrelevant
 Objectives cannot be translated into tasks
 It is unscientific
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10.  Merits
 It respects the superiors
 It kills competitive wars
 It is simple
 Demerits
 It is not logical
 It is a misfit
 It is difficult to get competitors’ information
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11.  Merits
 It is practical
 It is simple
 It is flexible
 Demerits
 It overlooks opportunities
 It is short-sighted
 It ignores the ability of advertising
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12.  Merits
 Simplicity
 Consistency and operational stability
 Funding stability
 Reduces internal rivalry
 Demerits
 Promotes unnecessary spending
 Discourages innovation
 Fails to account for changes and external
factors
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13.  Merit
 It is simple as compared to other advertising
budget methods.
 Demerit
 The method is based on a vague basis of
market share, whereas companies' own
advertising and marketing objectives are
ignored.
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14.  Top-down approach
 Bottom-up approach
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15.  Financial condition
 Objectives of advertising
 Nature of Product
 Nature of customer
 Stage of product life cycle
 Advertising strategies
 Top management philosophy
 Competitors’ budget size
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16. ?
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17. Thank you
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