Entrepreneurship and Small Business Management

Section 2: Budgeting and Implementing Promotional Plans

Section 12.2 Summary
A realistic promotional budget has a direct effect on how you implement your promotional plans. Established businesses use previous plans and sales figures to determine a promotional budget. New ventures must determine a budget by costing out promotional activities and comparing them to industry averages. Many businesses with limited promotional budgets design and carry out their own ads. Others have major advertising media help prepare and create ads or engage in cooperative advertising with a supplier or manufacturer. Businesses with larger budgets hire advertising agencies to handle all phases of their advertising efforts. If your advertising is not generating results, you may need to change your promotional strategy by adjusting your advertising, generating publicity, employing sales promotions, or increasing the productivity of your sales force.

Section 12.2 Reading Organizer
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