Budget is quantitative expression of future plan of activities. It is a future plan of activities expressed in terms of currency/rupees. It is prepared for a fixed period of time. Advertising budget is a financial document that’s hows the total amount to be spent on advertising and lists the way this amount is to be allocated. It is a translation of advertising plan into money to be spent on advertising. It is an estimation of total amount to be spent on advertising during a given period of time for achieving marketing objectives. It involves allocation of a portion of total marketing resources to advertising functions of a firm. An advertising budget shows how much amount is to be spent on advertising and how this amount will be allocated among different media, sales territories, products, selling-activities, etc. It states the proposed advertising expenditure and serves as a decision-making tool for the management while allocating available funds to the various advertising functions and related activities of the company. Advertising budget and its process is similar with the Sales Promotion budget
Integrated Marketing Communication (IMC) budget
. All three terms can be used interchangeably also due to close similarity.Advertising budget is prepared by Advertising Manager in consultation with Marketing Manager of thecompany. But in small business organizations, which do not have separate advertising department theresponsibility of preparing ad-budget lies on top management or Marketing Manager. According to the Institute of Cost and work Accountant London “A budget is a financial or quantitativestatement prepare prior to a definite period of time; of the policy to be persuade during that period for the purpose of achieving a given objective”.
Features of Advertising Budget
The features of advertising budget are as follows:
1) Advertising budget is a financial statement expressed in monetary terms, 2) It is for a...