Union Budget 2017–18 Keypoints: Advertisement 1. Tax reduced from 10 percent to 5 percent: People with taxable income in between 3 to 5 Lakh will now have to pay only half of the taxes they used to pay earlier. Below 3 lakhs, tax is exempted. 2. However, the tax...
The quantitative method:- Modern advertising manufacturers use quantitative methods such as regression analysis. Regression analysis is based upon cross-sectional data & time series data. Share of voice method:- The underlying principle in this method is that the dominant brand in the product category will spend lower than...
The break even method of preparing advertising budget:- This method attempts to quantity the advertising spending level that will offer an organizing the highest additional gross profit. The firm continues to spend on advertising as long as the incremental expenditures are exceeded by the marginal the gross...
All you can afford method:- Under this method the advertising budget is decided on the basis of whatever money is left after all other fixed and unavoidable expenses have been allocated. Conservative management uses this method & also new entrepreneurs follow this when they are short of funds...
Task approach method of preparing advertising budget:- Under this method a company lunching a new product will decide on to spend more money as it has to create immediate awareness amongst the consumers. The company may spend less advertising for an existing well known brand.
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...
Meaning of advertising appropriation:- The manufacturer sets apart sum money to be spending on advertising which is referred to advertising appropriation. Method of preparing advertising budget:- The various methods which are used for setting advertising budget are: Percentage of sales method. Unit of sales method. Competitor expenditure method....
Advertising budget appropriation:- The advertising man while developing advertising budget has to consider several factors before giving it final shape appropriating the amount to be spend on advertisement. Such variables are population & income trend, economic situation, competitive behaviour, product improvement & sales force etc. the advertising...
Advantages of advertising budget:- Facilitates evaluation of advertising expenditure. Introduces rational approach. Keeps advertising expenditure with limits. Provides proper direction to advertising Expenditure. Facilitates advertising planning & execution. Act as a controlling device. Facilitates selection of suitable media.
Factors Determining Advertising Budget:- Organizational Objectives. Type of product to be marketed. Frequency of advertising. Expenditure of the previous year. Size of the Company. Media used. Availability of Finance. Size of the market. Impotence of Middlemen. Quality of Advertising campaign.
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