Explain 4 Methods Of Preparing Advertising Budget


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Advertising Budget

 

  • Percentage of sales method:-

In this method advertising budget is linked with the total sales of the previous year.

  • Unit of sales method:-

In this method the calculation of the budget is made as per the units sold or the total volume of sales taken place in the previous period.

  • Competitor expenditure method:-

This is also called as competitive parity method. It is based on the expenditure incurred by competitors on advertising.

  • Market share method:-

In this method the advertising budget is decided on the basis of the market share of the company in a particular product category.

 


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