Marketing Tips Marketing information Buget Plan your Advertising Budget summary
Plan your Advertising Budget summary
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- Published on Monday, 17 October 2011 02:39
- Written by Super User
Deciding how much your advertising should cost - including how much should be invested to increase sales - and how that amount should be allocated is completely up to you.
Advertising costs are a controllable expense. Advertising budgets are the means of determining and controlling this expense and dividing it wisely among departments, product lines or services.
This fact sheet describes various methods of establishing an advertising budget, and suggests ways of applying budget amounts to get the desired outcome.
If you want to increase sales, it is almost certain that you will need to advertise. How much should you spend? How should you allocate your advertising budget? How can you be sure your advertising spending is not out of line? The advertising budget helps you determine the amount to be spent as well as how you are going to spend it.
What you would like to invest in advertising and what you can afford are seldom the same. Spending too much is obviously an extravagance, but spending too little can be just as bad in terms of lost sales and lowered visibility. Costs must be tied to results. You must be ready to evaluate your goals and assess your capabilities - a budget will help you do exactly this.
Your budget will help you choose and assess the amount of advertising and its timing. It will also serve as the background for next year's plan.
