Briefly describe the methods of advertising budget development.

Briefly describe the methods of advertising budget formulation.

View Answer Correct Answer Methods of advertising budgeting:

(1) Percentage of Sales Method (Physical Volume of Sales Method)

The Percentage of Sales Method is a method of advertising budgeting based on a company's sales, and it is a method of extracting a fixed percentage of advertising expenses from sales.

(2) target task method

The target task method is based on the goals and tasks of the advertising program to determine the advertising budget, is one of the most effective advertising budget method.

(3) Competition and confrontation method

In the fierce competition in the market, enterprises should always pay attention to the situation of competitors in the planning of promotional activities, the competition and confrontation method is based on the level of competitors' advertising budget to determine the advertising budget of the enterprise.

(4) Expenditure Possibility Method

Payment of advertising costs should take into account the ability of the enterprise, with the enterprise's financial potential to provide advertising expenditure to determine the advertising budget, known as Expenditure Possibility Method.

Answer Analysis This question examines the methods of advertising budgeting. See textbook P396-397.