Marketing Promotional Budget Decisions Remember, one of the most difficult marke
ID: 391205 • Letter: M
Question
Marketing Promotional Budget Decisions Remember, one of the most difficult marketing decision facing companies is how much to spend on promotion. Thus, it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30 to 50% of sales in the cosmetics industry and from less than 5% in the industrial sector. There are four common methods that companies use to decide their promotion budgets. They are the affordable method, the percentage-of-sales method, the competitive-parity method and the objective-and-task method. Find a scholarly, peer-reviewed journal article (published within the last 5 years) on a topic of promotion budgets
Explanation / Answer
Promotion budget :-
Marketing promotional budget decision now a days promotion plays an important role for selling the product and services to inform about the new product and services.or to build a brand value promotion plays a important role for all these things.
Now it takes to much of money for promoting the product.so some factors are consided for promotional product. Like a new product requires more on promotion and a good brand value companies requires less than the new company.
But high promotional budget can reduce the profit from the product
Cosmetic product requires too much promotion budget because last 5 years there are so many new company comes in the field of cosmetic so to make a brand value it requires too much budget for selling the products.