Name and describe the methods for determining a marketing budget
What will be an ideal response?
(1 ) Percent-of-Sales Budget — The percentage of sales that a business uses is often based on previous experience, but it could vary from past experience depending on the nature of the strategic market plan that will be implemented. An aggressive growth strategy might require more than the normal percentage of sales to achieve share and sales objectives. On the other hand, a harvest strategy may slowly reduce marketing and sales expenses as a percentage of sales while market share is harvested over time.
(2 ) Customer-Mix Budget — The cost of customer acquisition and retention and the combination of new and retained customers are used to establish a customer-mix marketing and sales budget. Because the rate of new-customer acquisition can change the budget that is required, many market-based businesses see the customer-mix approach to funding the marketing and sales budget as the best approach.
(3 ) Bottom-Up Budget — A bottom-up approach to developing a marketing and sales budget specifies each marketing task and the amount needed to accomplish it, given a particular strategic market plan and the task-related marketing mix strategies.
You might also like to view...
Suppose the following version of the APT is a good model of risk in the stock market. There are three factors: (1) the stock market's excess return, in percentage points; (2) the change over the last year in the inflation rate, in percentage points; and (3) the spread between ten-year Treasury bonds and three-month Treasury bills, in percentage points. Suppose the stock market's average excess return is 7 percentage points and the average risk-free interest rate is 1 percent, the average change in the inflation rate is 0 percentage points, and the average spread between ten-year Treasury bonds and three-month Treasury bills is 2 percentage points. Each of the following stocks has the beta coefficients shown in the table below:
?1i ?2i ?3i Microsoft2 ?1 1 Goldcrafters3 2 ?1 State Farm0 ?2 0 a.What is the expected return to each of the three stocks? Show your calculations. b.If the market's excess return were to rise 10 percentage points in a particular year (that is, instead of the average of 7 percent, the market's excess return will be 17 percent), what would you expect the effect to be on the return to each of the three stocks? Show your calculations. c.If the inflation rate was expected to rise 2 percentage points in a particular year (that is, instead of the average of 0 percent, the inflation rate will rise by 2 percentage points), what would you expect the effect to be on the return to each of the three stocks? d.If the interest-rate spread rose 2 percentage points in a particular year (that is, instead of the average of 2 percentage points, the interest-rate spread will be 4 percentage points), what would you expect the effect to be on the return to each of the three stocks? What will be an ideal response?
The face rate is also called the nominal or stated rate
a. True b. False Indicate whether the statement is true or false
Manufacturing costs other than direct materials and direct labor, and are not readily traceable to specific units or batches of production are called:
A. Factory overhead. B. Nonmanufacturing costs. C. Administrative expenses. D. Preproduction costs. E. Prime costs.
Culture is transmitted through the process of ______ and interacting with the social environment.
A. talking B. learning C. hearing D. governing