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Q. Methods of preparing advertisement Budget?
Every advertiser sets apart a total of money to be spent on advertising which is referred to as advertising appropriation. The amount isn't fixed arbitrarily but is determined on some scientific basis. Following methods are usually used in determining the size of advertising budget:
1) Percentage (%) of sales Method
2) Competitive party Method
3) Objective and task Method
4) Affordable Method
5) Judgments Method
6) Increase over Past Year's Budget
7) Return on investment
8) Quantitative methods
9) Marginal Approach to Ad budget
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