Setting overall expenditure levels

We can use traditional approaches such as those suggested by Kotler et al. (2001). For example:

• Affordable method - the communications budget is set after subtracting fixed and variable costs from anticipated revenues.

• Percentage-of-sales methods - the communications budget is set as a percentage of forecast sales revenues.

• Competitive parity methods - expenditure is based on estimates of competitor expenditure. For example, e-marketing spend is typically 10-15% of the marketing budget.

• Objective and task method - this is a logical approach where budget is built up from all the tasks required to achieve the objectives in the communications plan.

Case StudyB

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