“I know that half of my advertising budget is wasted, but I’m not sure which half”
By: Lord Leverhulme
Setting the Budget in Advertising
It is very important to take the advertising/marketing budget seriously. Too much could bankrupt a company and too little could decrease profits. At times budgeting may seem difficult, however Entrepreneur.com provides us with an estimation that 2 to 5 percent of your anticipated gross sales are needed for advertising. So there’s a start…
They going into further detail by explaining that there are 2 methods for discovering what amount of spending is need for advertising. First is the cost method, which states that an advertiser/marketer is unable to budget more that he or she has. Second is task method; companies use this method on determining cost by what the previous year allocations were.
Cost of Advertising
Advertising does not have to be expensive. The cheapest method is word-of-mouth (some professors believe this is not a form of advertising) and the most expensive could be considered a Super Bowl advertisement. However, resources like business cards, flyers, and brochures are still very inexpensive in get the message out there. E-mail is also a great resource for advertising, though laws have been implemented for those individual who are not fond of this method and believes it interferes with their privacy.
http://azaz.essortment.com/businessadvert_rewm.htm
http://www.entrepreneur.com/advertising/adsbybudget/budgetandplanning/article21734.htm http://www.killianadvertising.com/wp10.html
1 comment:
i am more likely to go check something out from word of mouth b/c i know that person has probably already gone to go 'check it out' first and if it was not worth it to them and if they know me/ my taste, I will know if it is worth it or not for me to go see myself.
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