RANSBIZ is technology blog in Cameroon for tutorials topics on; making money online, Affiliate Marketing, SEO, Technology News, blogging , Free internet tips, Social media ,Bulk Sms marketing, earning with Google AdSense, how to shop online in Cameroon, Mobile phones and entrepreneurship .
RANSBIZ is created in an effort to promote the use of technology in Cameroon especially by the youths.
Setting Up an Advertisement Budget for a Business
Expose your business to those who need your services or product.
The greatest thing in business is
exposing your business to potential clients. Thousands of people are in need of
your products and services. Sometimes some businesses close don because they
have not had the required number of clients they expected after a given period
of time. Many people starting a business usually focus on the profits that are
behind the business. It is also important to set a budget for advertisement.
This is the first task of the marketing department .
The are a good number of sites to
advertise your business online such as Google adwords, chitika , social media
marketing such as facebook and twitter,. when you have mad the decision on how
to advertise you business be it online or offline, you will need to set up a
Below are the various methods of
setting up an advertisement budget.
of Sales Method (PSM)
The major goal
of any business is to get the maximum number of clients. By the PSM
advertising cost are linked to the firms or company’s sales volume level.
This method is good for
business with few customers. As such as the percentage of sales increases, the advertisement
budget will also increase which means as the advertisement budget increases,
the percentage of sale will increase. Thus making the business successful. If
you have some clients who buy your products or service, you can use the profit
made to start exposing your business.
2.Competitive Parity Method
Every business has competitors and there
are many ways to top the list. This can also be done using advertisement.
By This method the company or firm
first assessed the budget of the various budgets set by competitors and set its
own budget inline with those of its competitors. It can be used by starting firms
and existing businesses with no or low advertisement budget.
3.Objectives And Task Business (OTB) Method
companies have policies that they have put in place for the success of their
With the OTB
method, specific objectives are set and policies that are best to achieve these
objectives are developed. The advertising budget is determined based on the
policies put in place.
of Sales Method
In this method,
a firm with different products set a fixed amount of money to advertise each
units of each product to be marketed. MTN
is using this method to advertise Mobile money.If you have a variety of products you can this method can really
increase your sales.
This method is
used by companies with a marketing manager. By this method, the marketing manager decides
how much to spend on advertisement. The success of this method greatly depends
on the manager’s experience and skills.
6.Build Up Method
This is for a firm or company that wants to
use a variety of media to advertise their products or services. You might want
to advertise on a new paper, journal, website etc. The budget will be assigned
will thus consist of the sum of all the financial allocations assigned to the
various advertising media.
Those who use
this method try to ensure that for any money spent in advertising, an equal or
a more than proportionate increase in profit. The budget set here is targeted towards certain
method, the advertising budget on the basis of what can be afforded. Those who
use this method regard advertisement as a luxury which can be afforded in good times
(when the advertisement is successful) and cutback in bad times (when it the advertisement
is unsuccessful). This is not a very good philosophy in business. Your thought
should be towards success if you think your brand or your business is the best.
This is not a very good philosophy for a success oriented person.
With the residual
method of setting up an advertising budget, the budget is assigned after all
other cost had been covered.