Which steps should marketers follow when using the objective-and-task method to determine a budget

A company's advertising budget generally depends on the company´s marketing goals and objectives. A business can use any of several allocation methods to create its marketing budget. The objective and task method is a method of allocating funds to advertising. Using this method requires the advertising budget to reflect the desired result and the promotional tasks.

Marketing Methods

1. Four common strategies of budgeting for promotional expenditure include the percentage of sales method, affordable method, competitive parity method and objective and task method. The percentage of sales method is used by companies that prepare sales forecasts to set budgets. This method allocates marketing expenditures based on past or anticipated sales. The affordable method, on the other hand, allows a company to invest what it can afford toward advertising. Companies that use the competitive parity method attempt to match advertising spending to competitors’ budgets.

Objective and Task Method

1. Businesses that use the objective and task method for determining advertising expenses allocate the marketing budget based on set objectives. To use this method, a company must define the desired results of advertising and the strategies and tactics required to achieve these results. Additionally, the business must assess the costs associated with these strategies and tactics. If no financial restrictions exist, a company can build its marketing budget by examining each goal or objective and the tasks necessary to reach these objectives. A primary challenge associated with this method is the difficulty of accurately assessing the advertising costs necessary to accomplish the goals.

Creating a Marketing Budget

1. To develop a marketing budget using the objective and task method, a company must determine its marketing objectives and the tasks required to perform those objectives. To calculate the promotional expenditures, the business must evaluate the costs of each task. Additionally, when using this method, businesses should monitor competitors’ activities and compare internal results against industry averages. Further, businesses must specify when to make advertising expenditures while maintaining an element of flexibility. Finally, the objective and task method requires the business to monitor the actual results against forecasts.

Other Factors

1. Before deciding on an advertising campaign, a company should always assess current market conditions. The factors a firm should consider when creating a marketing budget include the nature of the market, the profile of target customers and the position of the company´s products or services in the market. The company also must evaluate how much profit it can expect to earn for each dollar spent on promotion. A company can also choose to combine several marketing methods to achieve the best possible results from marketing efforts.

When using the objective and task method to determine the promotion budget marketers must take Which of the following steps?

When using the objective and task method of IMC budgeting which process must be repeated for each product or service?

Which of the following are methods of setting a budget for promotion?

Which is considered to be the best marketing communications budget method?