MANAGEMENT

Detailed explanation-1: -It depends on the company’s goals. If it targets higher sales than your competitors, the company charges higher advertising spend. An advertising budget equal to the average competitor is to maintain current sales and market share. The competitive parity method assumes that advertising budgets correlate with sales.

Detailed explanation-2: -An advertising budget is an amount set aside by a company planned for the promotion of its goods and services. Promotional activities include conducting a market survey, getting advertisement creatives made and printed, promotion by way of print media, digital media, and social media, running ad campaigns, etc.