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12.7. Setting The Budget

Having decided the overall plan for the marketing campaign, the marketer needs to decide what the organisation can afford. The level of noise from advertising clutter means that companies must spend a certain minimum amount to be heard at all, so clearly there will be a level below which there is no point in spending any money at all.

In the real world, marketers will adopt a combination strategy, using several of the above methods. Even an objective and task approach might begin by looking at what the competition is spending (comparative parity approach), if only to determine what the likely spend would have to be to overcome clutter. Likewise, a marketer may be part-way through a campaign and be told by the finance department that no more money is available (or perhaps be told that more than anticipated is available) and will switch to an all-you-can-afford policy.

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