International Journal of Marketing and Business Communication

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Establishing and Allocating the Marketing Communications Budget in Indian Organisations


Affiliations
1 Management Science, School of Business, Alliance University, Bengaluru, Karnataka, India
2 Marketing, School of Business, Alliance University, Bengaluru, Karnataka, India
     

   Subscribe/Renew Journal


Two of the most critical decisions facing marketing managers are how much to spend on communications or promotion (i.e. to determine the marketing communications budget), and how to allocate it over the major tools or elements of the communications mix (viz. advertising, sales promotion, direct marketing, personal selling, public relations, and publicity).

There are four common methods used by companies to decide on the communications budget. These are the affordable method, the percentage-of-sales method, the competitive parity method, and the objective-and-task method. Many companies employ more than one method to arrive at relatively accurate budget figure.

Companies consider several factors when they allocate the communications budget, including the market size and potential, market share objectives, product market type, product life-cycle stage, and buyer-readiness stage.

The present study is undertaken to understand the usage of different communications budgeting methods and the allocation of the communications budget to the different promotional elements in Indian companies. These are further compared between consumer durables and non-durables, industrial products, and services.


Keywords

Social Media, Customer Complaints, Customer Perceptions, Customer Behaviour.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ai, S., Du, R., & Hu, O. (2010). Dynamic optimal budget allocation for integrated marketing considering persistence.

  • International Journal of Information Technology & Decision Making, 9(5), 715-736.

  • Doyle, P., & Saunders, J. (1990). Multiproduct advertising budgeting. Marketing Science, 9(2), 97-113.

  • Farris P. W. (1977). Determinants of Advertising Intensity: A Review of Marketing Literature, Report No. 77-109, Marketing Science Institute, Cambridge, MA.

  • Jones, J. P. (1990). Ad-Spending: Maintaining market share. Harvard Business Review, 68(1), 38-42.

  • Lilien, G. L., Rangaswamy, A., & De Bruyn, A. (2007). Principles of Marketing Engineering, Tradfford Publishing, Canada.

  • Low, G. S., & Mohr, J. J. (1991). The budget allocation between advertising and sales promotion: Understand the decision process. AMA Educator's Proceedings, 448-457.

  • Low, G. S., & Mohr, J. J. (1998). Brand Managers' Perceptions of Marketing Communications Budget Allocation Process. Marketing Science Institute, Cambridge, MA.

  • Luchsinger, P. B., Mullen, V. S., & Jannuzzo, P. T. (1977). How many adverting dollars are enough? Media Decisions, 12, 59

  • Lynch, J. E., & Hooley, G. J.(1990). Increased sophistication in advertising budget selling. Journal of Advertising Research, 30(1), 67-76.

  • Naik, P. A., & Raman, K. (2003). Understanding the impact of synergy on multimedia communications. Journal of Marketing Research, 40(4), 375-388.

  • Simon, J. A., & Arndt, J. (1980). The shape of the advertising response function. Journal of Advertising Research, 20(4). 11-28.

  • Welch, M. (1993). Upbeat marketers wield bigger budgets, shift marketing mix. Business Marketing, 23.


Abstract Views: 557

PDF Views: 3




  • Establishing and Allocating the Marketing Communications Budget in Indian Organisations

Abstract Views: 557  |  PDF Views: 3

Authors

Mihir Dash
Management Science, School of Business, Alliance University, Bengaluru, Karnataka, India
Krishna K. Havaldar
Marketing, School of Business, Alliance University, Bengaluru, Karnataka, India
Jacob Alexander
Marketing, School of Business, Alliance University, Bengaluru, Karnataka, India

Abstract


Two of the most critical decisions facing marketing managers are how much to spend on communications or promotion (i.e. to determine the marketing communications budget), and how to allocate it over the major tools or elements of the communications mix (viz. advertising, sales promotion, direct marketing, personal selling, public relations, and publicity).

There are four common methods used by companies to decide on the communications budget. These are the affordable method, the percentage-of-sales method, the competitive parity method, and the objective-and-task method. Many companies employ more than one method to arrive at relatively accurate budget figure.

Companies consider several factors when they allocate the communications budget, including the market size and potential, market share objectives, product market type, product life-cycle stage, and buyer-readiness stage.

The present study is undertaken to understand the usage of different communications budgeting methods and the allocation of the communications budget to the different promotional elements in Indian companies. These are further compared between consumer durables and non-durables, industrial products, and services.


Keywords


Social Media, Customer Complaints, Customer Perceptions, Customer Behaviour.

References