BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...
advertising budgeting, methods, challenges
1.
2. Advertisement budget is a statement of
future estimated expenditures for ad efforts.
It is converting the advertising plan into
monetary value.
2
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.
3
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.
4
5. Ad construction cost
Media cost
Ad agency cost
Ad department cost
Ad research cost
5
7. The percentage of sales method
Objective and task method
Competitive parity method
Affordability
Incremental method
Return on investment
7
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
8
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
9
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
10
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
11
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
12
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.
13
