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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
Competitive parity method
Objective and task method
Affordable method
Setting the promotion budget at the level
management thinks the company can
afford
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.
Competitive parity method
Setting the promotion budget to match
competitors outlays.
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.
Shaping the over promotion mix
How does the company determine what mix
of promotion tools it will use?
Nature of promotion tools
Tools are:
Advertising
Personal selling
Sales promotion
Public relations
Direct marketing
Promotion mix strategies
There are two strategies:
Push strategy
Pull strategy
Push strategy
Involves pushing the product through
marketing channels to final consumers.
Pull strategy
A promotion strategy that calls for spending
a lot on advertising and consumer
promotion to induce final consumers to
buy the product.