MANAGEMENT

Detailed explanation-1: -The simplest method for determining the promotion budget is often merely using a percentage of last year’s sales or the projected sales for the next year. This method does not take into account any changes in the market or unexpected circumstances.

Detailed explanation-2: -Affordable Method This advertising budgeting method is based on what a company thinks it can afford to spend on marketing. Because it’s not based on a specific goal or any underlying data, the affordable method can be unreliable, leading to too much or too little being spent relative to returns.

Detailed explanation-3: -Marketing Methods This method allocates marketing expenditures based on past or anticipated sales. The affordable method, on the other hand, allows a company to invest what it can afford toward advertising. Companies that use the competitive parity method attempt to match advertising spending to competitors’ budgets.

Detailed explanation-4: -The objective-task methodThe most common technique of bottom-up budgeting, in which a company sets the objective or task they want the promotion to achieve, then estimates the budget needed to achieve it; top management reviews and approves the budget recommendation. is the most common technique of bottom-up budgeting.