A properly budgeted for advertising is imperative for both new products and even the already existing products. There are factors making it difficult to come up with accurate advertising budget. This project highlights key factors that affect advertising budgeting (Cliche, 2012). Among other things discussed is, the importance of advertising media and creative department working together, and the place of public relation in marketing.
Advertisement budgeting is crucial for business as it increases the level of sales, which translates to higher revenues. However, management team usually finds it difficult to come up with advertisement budget due to a number of factors. The most common factors are the availability of funds; in most cases management are forced to prepare a budget that is a low standard because of the inadequate funds (Sullivan, 2013). Cost of the advertising space is the other factor; most advertising space is very costly making it difficult to set a good budget. Balancing available fund with the cost of advertisement to come up with a better advertisement budget is one of the most difficult things faced by management.
Both advertising media and creative department need to work closely to ensure that advertisement remains relevant to its target audience. In the contemporary market, media specialists have a broad understanding of the customer perception (Cliche, 2012). They also share rational and more factual approaches that attract new customers. When this is combined with psychological and aesthetic approach of the creative department, the business can be able to achieve its goal. When advertisement media work closely with the creative department, the image of the business will be promoted, which is important for the success of any business (Sullivan, 2013).
Public relation is scattered, limited in use, and given very little attention as advertisement and as such, it is referred to as marketing stepchild. This is because; the amount of marketing budget allocated for the public relation is very small. Concentration is put on the publics-stockholders and press while public relation being ignored. The best marketing and branding tools are a well-planned public relation. To achieve this, marketing budget allocated for public relation should be increased (Cliche, 2012). There is also a need to organize duties of public relation in the objectives of product marketing. When the value of public relation in an organization is recognized and appreciated, it will be the best tool in marketing.
Campbell’s Soup Company can accurately determine how effective the advertisement is by beginning with calculating return on investment, which involves evaluating cost against the return from the advertisement. From the calculation, the ratio obtained and a higher ratio shows a better return. The other way that can be used by Campbell is to make use of diverse types of marketing media (Sullivan, 2013). Through this method, a new product can reach a number of people and overall effectiveness of the multiple media.
Looking at the importance of budgeting in advertisement, a number of factors such as availability funds, competitors, and advertising space need to be taken care of as they directly affect the budgeting decisions. Even though public relation has been given little attention, it can be the most economical tool in marketing when given proper attention. For a good business image and quality advertisement that results into satisfaction of the customers, advertising media and creative department need to work together. A good advertising method need to yield more return compared to the cost being used in the advertisement.
Sullivan, A. (2013). Economics: Principles in Action. Upper Saddle River, New York: Pearson Prentice Hall.
Cliche, P. (2012). Budgeting Problems Faced By Management Team. New York: Prentice Hall.