• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Marketing Expenditure.

Extracts from this document...


Marketing Expenditure budget is the amount the firm intends to spend in order to achieve it's marketing objectives. It allocates a certain amount to be spent on that particular activity, such as spending only �3 million on promotion. Jetsave can be dependent on marketing expenditure budget to some extent, because it depends upon the firm's overall financial position. As the amount allocated to a particular function such as marketing will totally depend upon what it has available to spend in total. Thus in successful year the firm is likely to have greater budget at ease rather than low in an unsuccessful year. Additionally, in relation to marketing budget, budgets are likely to be lower when sales are lower and greater when sales are high. Although it can be argued that if jetsave face an unsuccessful year, their budgets should be high rather than lower in order to maintain and improve sales, so e.g. ...read more.


Thus, reducing the returns made, hence firm is unable to allocate funds to certain activities of the firm, such as the advertising budget may be reduced, thus sales may fall, due to the lack of information being advertised about the service offered by jetsaves, thus the expected sales level may fall, meaning that the firm may have to change its marketing mix as well as the need to raise funds to finance the promotional campaign. However, when setting the budget, to reduce common problem listen above, the firm can reduce these problems by involving the financial experts who will actually have to achieve the financial targets, thus commitment will be shown, as these people will be involved in t he process and will be motivated to achieve them. Furthermore, the process of discussing the targets may specify issues about the local business environment as before the firm launches its service it should have prior knowledge of whether the project is feasible or not, ...read more.


However, the firm must remember that marketing expenditure budget can be useful to some extent but it must consider other factors as well as expenditure budgeting. Sales budgeting should be considered as well as it considers several issues. The size of sales budgeting depends upon factors such as the level of sales a product will achieve, although the firm has no data to use to predict future sales hence a market research can be conducted to estimate the level of sales although the data can be expensive to gather in the first place, as extrapolation cannot be used due to no previous data. Additionally, the firm may seek the market conditions as the action by competitors and the state of economy can affect the firms' expected level of sales. The firm must realise that the size of the marketing expenditure budget does not itself determine success; it also depends on how the money is used, so the firm's overall cashflow position should forecasted carefully before decisions are made. Also marketing budgets include targets for sales as well as spending. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. creating a marketing proposal

    To do that you need equipment, materials and good planning to make sure everything gets done properly. You also need to make sure that what is produced meets the quality standards that customers expect. If the business produces a service then, again, it has to be planned, monitored, organised and delivered.

  2. Business Studies - Project

    To decide which markets should be served * To get the goods to the customers The Marketing Mix (The four P's) The full range of activities that may be used by a business to market its products is called the marketing Mix (also known as the four P's.

  1. Telemarketing Project

    The purpose is let everybody better understand this kind of marketing method, especially the "what", "why", "when" and "how to" of Telemarketing. In addition, field interviews by telephone were conducted to determine some of the responses, opinions, reasons, and acceptance of Telemarketing by consumers.

  2. Marketing Inteligence Exam Project: Snowboarding

    to listen to and clothes to wear just as skating and surfing did before. According to Nigel Lloyd, in the Sunday Observer, October 2000, over 770.000 Britons went skiing in 1999, a figure he and a lot of experts where expecting to rise over the coming years.

  1. Marketing Strategy - Nintendo Gamecube

    This is because I think price is a very important factor in the video games industry because of the amount of competition in this market. Apr. 27 - 28 * Start putting together some slides for the aspect for presentation.

  2. Marketing budget.

    In unsuccessful years the budget should arguably be higher (not lower) in order to improve the firm's sales, assuming of course that the firm can raise the funds needed to finance this. Unfortunately, though, the size of the budget does not just depend on what the firm would like it

  1. Identify a marketing strategy for the Lydiard Travel Inn, Beefeater Restaurant, and Pub and ...

    anticipate that within three to four years there will be a nationwide Touchbase network of approximately 100 sites. Each Touchbase will be built alongside an existing Travel Inn, which provides customer and commercial synergies, both in terms of using the Travel Inn customer base and capitalizing upon the Travel Inn network landbank.

  2. Report on XE Marketing Campaign.

    By analysing the General Public Sampling (refer to appendage ), I was able to determine that the below products (Product Section) should be offered at XE. Product: The following products and services shall be offered to consumers at Xtreme Engine based on the graph 'Modifications wanted' (Appendage X).

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work