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8/26/2012

MBA Notes - Advertising Budget and Control

Question - What do you mean by advertising budget and control?

Answer
Definition of Advertising Budget
"Advertising budget is an estimated amount an organisation decides to invest in its promotional expenditures over a period of time. An advertising budget is the money a company set aside to accomplish its marketing objectives." 

Budget Administration and Control
Budgetary control is the use of the comprehensive system of budgeting to aid management in carrying out its functions like planning, coordination and control.
Advertising budget is directly related to advertising objectives. The advertising budget determines the perimeter of advertising activities of an organisation.

Allocation of advertising budget is not enough to achieve advertising objectives. Budget control is equally important. Budget control is periodic comparison of actual level of performance against budgets, and reporting the variances with proper analysis to provide basis for future course of action.

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