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Business, 09.03.2021 01:00 alyxkellar06

Determining the appropriate promotional budget is an important decision within any marketing strategy. Firms that set the budget too low risk blending into the competition and are often ineffective in communicating value to potential customers. Firms that set the budget too high open themselves up to waste and lower profits. Promotional budget decisions should consider a variety of factors, such as the types of products sold by the firm, the geographic location of the firm's customers, and the level of competition in the industry. Firms typically determine their promotional budget using one of three methods: (1) the affordable method, (2) the percentage-of-sales method, or (3) the objective-and-task method.

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