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Factors to consider when setting a promotion budget

      

Factors to consider when setting a promotion budget

  

Answers


Faith
i) Type of media to be used — Personal or non-personal
ii) Stage in the product life cycle - New products receive larger advertising expenditures to build awareness and gain consumer trial.
iii) Market share and consumer base — Higher market share brand usually require lower advertising budgets.
iv) Competition — Larger number of competitors, higher budget on advertising in order to be heard above the noise in the market.
v) Communication frequency — The number of times the advert has to be repeated.
vi) Product sustainability — Brands in a commodity class, e.g. cigarettes, beer, soft drink require heavy advertising to sustain them in the market.
Titany answered the question on October 7, 2021 at 05:11


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