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Establishing and Allocation of promotional
Budget (Presented By: Zeeshan Ayaz
Student ID: 30333)
Establishing and Allocation of
promotional Budget
Establishing and Allocation of
promotional Budget
Establishing and Allocation of
promotional Budget
Surf Excel Advertisement
 https://www.youtube.com/watch?v=BK3o_owHDAw
Budgeting Approaches and Budgeting
Allocation
Presented By:
Shabnam Aftab
Student ID:
Budgeting Approaches
2 Main Budgeting Approaches:-
1. Top-Down Approaches
2. Build-Up Approaches (Bottom-Up Approaches)
Budgeting Approaches
 Top-Down Approaches
Top-Down Budgeting
Top management sets
the spending limit
Promotion budget set to
stay within Spending
limit
Budgeting Approaches
 Top-Down Approaches
There are five top down approaches
1. The Affordable Method
2. Arbitrary Allocation
3. Percentage of Sales
4. Competitive Parity
5. Return on Investment (ROI)
Budgeting Approaches
 Top-Down Approaches
Percentage of Sales
2017 Total dollar sales $1,000,000
2018 Advertising budget $100,000
2017 Cost per product to manufacturer $4.00
2017 Forecasted sales, 100,000 units
METHOD 1: STRAIGHT PERCENTAGE OF SALES
Straight % of sales at 10% $100,000
METHOD 2: PERCENTAGE OF UNIT COST
Unit cost allocated to advertising $1.00
2018 Advertising budget (100,000 × $1) $100,000
Budgeting Approaches
 Build-Up Approaches (Bottom-Up Budgeting)
Promotion objectives are set
Activities needed to achieve
objectives are planned
Costs of promotion activities
are budgeted
Total promotion budget is
approved by top management
Budgeting Approaches
 Build-Up Approaches (Bottom-Up Budgeting)
 Objective and Task Method
I. Isolate objectives
II. Determine tasks required
III. Estimate required expenditures
IV. Monitor.
V. Reevaluate objectives
Budgeting Approaches
 Build-Up Approaches (Bottom-Up Budgeting)
 Objective and Task Method (Example)
Establish objectives
(create awareness of new product
among 20 percent of target market)
Determine specific tasks
(advertise on market area
television and radio stations
and in major newspapers)
Estimate costs associated with tasks
(television advertising, $575,000;
radio advertising, $225,000;
newspaper advertising, $175,000)
Budgeting Approaches
 Build-Up Approaches (Bottom-Up Budgeting)
 Payout Planning
 Quantitative Models
Allocation of the Budget
Allocation of Advertisement Budgets is based on following
elements:
 Allocating to IMC Elements
 Client–Agency Policies
 Market Size
 Market Potential
 Market Share Goals
 Economies of Scale in Advertising
 Organizational Characteristics
Surf Excel Advertisement Review
https://youtu.be/t0ENoQDzWvk
 Ramazan is a holy month and brands in Pakistan mostly come up with ad campaigns and
television commercials that impart the message of harmony, sacrifice and emotional
connections.
 The TVC of Surf Excel revolves around two elements of our society that need care,
support, love and tenderness i.e. orphanages and old age homes.
 The smallest deeds that are shown and executed in the TVC are cute, sweet and free
from all pretensions. Whether it’s about kids or seniors, the TVC captures the emotions
remarkably, making the final message impactful that the TVC tries to communicate.
 Imagine letting them all love together aged people from old age homes and kids from
orphanages together. A happy family will be the outcome of such a step.

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Marketing and advertising presentation.pptx

  • 1. Establishing and Allocation of promotional Budget (Presented By: Zeeshan Ayaz Student ID: 30333)
  • 2. Establishing and Allocation of promotional Budget
  • 3. Establishing and Allocation of promotional Budget
  • 4. Establishing and Allocation of promotional Budget
  • 5. Surf Excel Advertisement  https://www.youtube.com/watch?v=BK3o_owHDAw
  • 6. Budgeting Approaches and Budgeting Allocation Presented By: Shabnam Aftab Student ID:
  • 7. Budgeting Approaches 2 Main Budgeting Approaches:- 1. Top-Down Approaches 2. Build-Up Approaches (Bottom-Up Approaches)
  • 8. Budgeting Approaches  Top-Down Approaches Top-Down Budgeting Top management sets the spending limit Promotion budget set to stay within Spending limit
  • 9. Budgeting Approaches  Top-Down Approaches There are five top down approaches 1. The Affordable Method 2. Arbitrary Allocation 3. Percentage of Sales 4. Competitive Parity 5. Return on Investment (ROI)
  • 10. Budgeting Approaches  Top-Down Approaches Percentage of Sales 2017 Total dollar sales $1,000,000 2018 Advertising budget $100,000 2017 Cost per product to manufacturer $4.00 2017 Forecasted sales, 100,000 units METHOD 1: STRAIGHT PERCENTAGE OF SALES Straight % of sales at 10% $100,000 METHOD 2: PERCENTAGE OF UNIT COST Unit cost allocated to advertising $1.00 2018 Advertising budget (100,000 × $1) $100,000
  • 11. Budgeting Approaches  Build-Up Approaches (Bottom-Up Budgeting) Promotion objectives are set Activities needed to achieve objectives are planned Costs of promotion activities are budgeted Total promotion budget is approved by top management
  • 12. Budgeting Approaches  Build-Up Approaches (Bottom-Up Budgeting)  Objective and Task Method I. Isolate objectives II. Determine tasks required III. Estimate required expenditures IV. Monitor. V. Reevaluate objectives
  • 13. Budgeting Approaches  Build-Up Approaches (Bottom-Up Budgeting)  Objective and Task Method (Example) Establish objectives (create awareness of new product among 20 percent of target market) Determine specific tasks (advertise on market area television and radio stations and in major newspapers) Estimate costs associated with tasks (television advertising, $575,000; radio advertising, $225,000; newspaper advertising, $175,000)
  • 14. Budgeting Approaches  Build-Up Approaches (Bottom-Up Budgeting)  Payout Planning  Quantitative Models
  • 15. Allocation of the Budget Allocation of Advertisement Budgets is based on following elements:  Allocating to IMC Elements  Client–Agency Policies  Market Size  Market Potential  Market Share Goals  Economies of Scale in Advertising  Organizational Characteristics
  • 16. Surf Excel Advertisement Review https://youtu.be/t0ENoQDzWvk  Ramazan is a holy month and brands in Pakistan mostly come up with ad campaigns and television commercials that impart the message of harmony, sacrifice and emotional connections.  The TVC of Surf Excel revolves around two elements of our society that need care, support, love and tenderness i.e. orphanages and old age homes.  The smallest deeds that are shown and executed in the TVC are cute, sweet and free from all pretensions. Whether it’s about kids or seniors, the TVC captures the emotions remarkably, making the final message impactful that the TVC tries to communicate.  Imagine letting them all love together aged people from old age homes and kids from orphanages together. A happy family will be the outcome of such a step.