abhishreshthaa
Abhijeet S
Affordable Method -
•Funds remaining after budgeting for everything else are dedicated to communications
Problems:
•No strategic orientation
•Can lead to under- or over-investment in advertising
When most of us try to determine how much to invest in the future we go through the same drill. Based on how much we make, we deduct our monthly and special expenses, put a little emergency money aside and the rest gets invested (if anything is left over).
We invest sometimes for a quick return, but for the most part we are looking assure our future with equity. Marketers do much the same thing to arrive at advertising budgets, since they represent an investment in both the short and long-term future of their brand.
Among the many methods employed is the Share of voice method to determine the budget allocation, wherein the budget is set by spending to a share of media money spent in the marketplace among all competitors in the brand's category.
And there is the good old A/S ratio where the marketer examines the amount other competitors in the category spend in relation to sales and then approximates that level for his own brand. Sometimes, in a fit of even-handedness, all of these methods are used and a compromise is struck.
•Funds remaining after budgeting for everything else are dedicated to communications
Problems:
•No strategic orientation
•Can lead to under- or over-investment in advertising
When most of us try to determine how much to invest in the future we go through the same drill. Based on how much we make, we deduct our monthly and special expenses, put a little emergency money aside and the rest gets invested (if anything is left over).
We invest sometimes for a quick return, but for the most part we are looking assure our future with equity. Marketers do much the same thing to arrive at advertising budgets, since they represent an investment in both the short and long-term future of their brand.
Among the many methods employed is the Share of voice method to determine the budget allocation, wherein the budget is set by spending to a share of media money spent in the marketplace among all competitors in the brand's category.
And there is the good old A/S ratio where the marketer examines the amount other competitors in the category spend in relation to sales and then approximates that level for his own brand. Sometimes, in a fit of even-handedness, all of these methods are used and a compromise is struck.