• how many repetitions
• how much to spend
• will the market place change during the year
• how much of a role does advertising play in the sale.

1. clear about what advertising budget is expected to cover
2. Dates of fiscal year

• Percent of sale
• Competitive Spending
• Objective and task
• Expenditure per unit
• subjective judgment

Traditional Methods of  budget setting

Percent Of Sales

• multiplies projected sales revenue for the year by a given % to be spent on advertising.
• An advertising budget method in which advertising expenses are established as a fixed percentage of past, current, or future sales levels.

Traditional Methods of  budget setting

Competitive Spending

• sets budget based on the competiter's spending

Traditional Methods of  budget setting

Objectives & Task

• specific objectives are set and the projected cost of meeting those objectives is the budget

Traditional Methods of  budget setting

      Expenditure per unit (case rate)           

• simuilar to % of sale
• advertsing is based on how much sold not dollars earned. 

Traditional Methods of  budget setting

Subjective

think about each factor serpearly and assembled then in to the final buget. factors my be weighted.

1. assessing the task of advertising
   • what kind of advertising will you do?
   • do you have competitors
2. long and short term goals
   • image building takes time
   • short trem sales goal demands immediate action.
3. Profit margins
4. degree of product usage
5. difficulty in raching target markets
6. frequency of purchase
7. effect of increased sales volume on production cost
8. new product introduction
9. competitive activity

• Geographic Allocations
  • allocation is based on how much money came from the region
• Pay Out Allocations
  • offten used with new products
  • more then normal is allocated
  • extra mony comes from sales of the brand and brand profits for a limited time only.
  • investing promotion and profits fund is called Full Available