FDBU Year 2
MARKETING IN PRACTICE
Friday 10th May 2013
This report discusses the marketing budget of a small suburban bar(Bar X) and the forecasting techniques in which the organisation may use in negotiating the marketing budget, taking into consideration the implications of the marketing budget upon the marketing mix in relation to the organisation. “Marketing is often thought to be only selling and advertising. However, marketing consists of many other functions that can be seen far more important than just the exchange of goods.” (Kotler & Amrstrong 2004: 5)
Methods of setting Marketing Budgets
“A budget is defined as a detailed plan concerning the allocation of physical resources, expressed in monetary terms” Schmidt & Wright (1996)
Budgets are used in marketing to support with the marketing planning by assessing the needs for the company to generate goals for the marketing department to attain. These goals will also look contribute to the company’s foremost goals. What is a Marketing Budgets for?
The marketing budget is a plan for the forthcoming year for the marketing department, outlining what it hopes to achieve in terms of sales volume, sales revenue, expenditure and profit. A marketing budget is used to assist a company to achieve their major goals, by the marketing department creating their own goals. The goals that the marketing department will be based on issues such as new opportunities, up-and-coming threats, competitor activity and the resources that is accessible to them. An additional factor is that the marketing department will need to help with the product development to make sure that they can understand how to improve future products. Building brand loyalty is in the direction of the success of the marketing concept. Developing and exploiting crucial relationships among the customer and the brand, the customer and the firm, the customer and the product in use, and among customers is a strategy that leads to a belief that the buyer is part of a specific brand’s “community”. These relationships are vital because they facilitate marketers to create brand loyalty and customer retention, which yield the promise of long term profitability and market share. The Budget Plan
The budget plan would consist of various additional budgets to make sure that they can offer successful operations for each product. The budgets that the business will have to create for a successful campaign are: * The Communications budget – This budget is used to see how much money the marketing department has set for the methods of advertisement such as a company website or brochure. * The Public Relations consideration budget – This budget considers how much time the company puts into creating a public relations campaign to ensure. * The Product considerations budget – This budget has been set to look into how the company can develop their products from their research. This budget also considers what products might be useful in the future as technology is currently changing at a rapid rate. * The Research budget – The research budget will investigate into the target market of each individual product and also consider looking at how they can to develop their existing products. * The HR budget – The HR budget is used to see how many members they will need for the entire year and also to see how much they can budget for hiring new members of staff. * The Sponsorship – The marketing department will look into how much they will need to spend on sponsoring procedures in the future. Approaches to Budgeting...