Setting budgets for marketing programs is a key annual activity for any enterprise. The different approaches to making marketing budget are briefed below.
Objective and Task Method: Here the budgets are shaped according to marketing objectives and associated tasks. Calculation of money is done after setting objectives and the tasks needs to be completed to achieve those objectives.
Competitive Parity Method: Budget calculation is done after analyzing competitors spending on marketing activity.
Two other common approaches used while deciding marketing budget are percentage of sales approach and affordable approach. In the former the firm decides to spend a percentage of current or expected sales for marketing campaign. As the name depicts, affordable approach looks for an affordable budget for marketing programs.
Learn more on Marketing budget
