the advertising budget
no magic formula exists for setting the advertising budget. how to spend is always a perplexing question. commonly used methods include a percentage of last year's sale, a percentage of potential sale, or the industry percentage. these methods are all flawed because advertial should create sales and cause things to happen, not react to what has happened in the past or in other companies. consequently, the best method of setting advertising budget is to determine the objectives to be performed and allocate the proper amount to reach these objectives.