What Proportion Will You Adopt While Making Allotments To Advertisements And Promotions From The Total Budget For Marketing?

Digital Marketing
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The five specific factors which affect advertising budget allotment are: stage in plc; market share and customer base; competition and clutter; advertising frequency and product substitutability. Media categories can be chosen using the following variables: target audience media habits, product features messages and costs.

The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue for marketing and advertising if you’re doing less than $5 million a year in sales and your net profit margin – after all expenses – is in the 10 percent to 12 percent range.

Calculating Your Ad Budget

  1. Step 1: Take 10 percent and 12 percent of your projected annual, gross sales and multiply each by the markup made on your average transaction. …
  2. Step 2: Deduct your annual cost of occupancy (rent) from the adjusted 10 percent of sales number and the adjusted 12 percent number.