The percentage is worked out on the basis of a firm’s historical budget, industry norms or on the basis of the prevailing market conditions. If…

Consumer durable firms make use of this method as a variant on sales percentage. While it mostly works out same as a sales percentage, here…

The firm must carefully study Competitive information regarding their sales, distribution pattern and advertising. It will provide the correlation between the competitive sales and advertising…

In this method last year’s advertising budget is adopted for the year with a view that practically no change has taken place in the market…

Some firms believe that advertising is tactical and not strategic and hence does not need much attention. These kinds of firms follow a method of…

In case of multi location and multi product line firms , a total amount id decided as advertising and each strategic business unit receives a…

This method is useful in dynamic markets and budget can be fixed on the estimated demand pattern than the current year sales.

This method takes in to account the seasonality of business and the periodicity in the purchase cycle of consumers in to consideration. This method takes…

Market research gives advertising expenses, market response and sales per advertising figures and the modeling is done to explain the budget.

This method takes in to consideration several factors in formulating the advertising budget which include indices like firm’s past sales, future sales projection, production capacity,…