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Setting the total promotion budget and mix

Setting the total promotion budget and mix Presented by : Jamila BB 07-48 Presented to : Madam Ammara. Setting the total promotion budget and mix. How does the company decide on its total promotion budget?. Methods of setting. These are: Affordable method Percentage of sales methods

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Setting the total promotion budget and mix

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  1. Setting the total promotion budget and mixPresented by : Jamila BB07-48Presented to : Madam Ammara

  2. Setting the total promotion budget and mix How does the company decide on its total promotion budget?

  3. Methods of setting These are: Affordable method Percentage of sales methods Competitive parity method Objective and task method

  4. Affordable method Setting the promotion budget at the level management thinks the company can afford

  5. Percentage of sales method Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of unit sales price.

  6. Competitive parity method Setting the promotion budget to match competitors outlays.

  7. Objective and task method Developing the promotion budget by defining specific objectives, determining the tasks that must be performed to achieve these objectives and estimating the costs of performing these tasks.

  8. Shaping the over promotion mix How does the company determine what mix of promotion tools it will use?

  9. Nature of promotion tools Tools are: Advertising Personal selling Sales promotion Public relations Direct marketing

  10. Promotion mix strategies There are two strategies: Push strategy Pull strategy

  11. Push strategy Involves pushing the product through marketing channels to final consumers.

  12. Pull strategy A promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product.

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