Elective - Advertising Management

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National Institute of Business Management

Chennai - 020

EMBA/ MBA

Elective - Advertising Management

Attend any 4 questions.  Each question carries 25 marks

(Each answer should be of minimum 2 pages / of 300 words)

Question. 1. As a manager of consumer electronics shop, how will you prepare an advertising budget? What all steps will you take in the advertising budgeting process taking care that your advertisement is not a waste in the competitive market.

Answer:In this advertising world, every day we see many advertisements of different products or brands. Organisation invests heavily in advertising to make their product popular and to increase sales. But, here the question is - how the organisations decide - how much to advertise? How much to invest in advertisement? What should be the size of advertising budget?

Definition of Advertising Budget

"Advertising budget is an estimated amount an organisation decides to invest in its promotional expenditures over a period of time. An advertising budget is the money a company set aside to accomplish its marketing objectives."

It is difficult to measure the effect of advertising on business sales. Advertising is just one of the variables that affects sales in a period of time. As a percentage of sales, advertising expenditure varies from business to business. Because of such complications it is very difficult for business organisations to decide the size of advertising budget. There are various approaches that can be used to set advertising budget.

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