The Budget
Marketing mix components must be evaluated as part of an overall marketing strategy. Therefore, the organization must establish a marketing budget based on the required marketing effort to influence consumers.
The marketing budget represents a plan to allocate expenditures to each of the components of the marketing mix.
Types of Budgets
For example, the firm must establish an advertising budget as part of the marketing budget and allocate expenditures to various types of advertising media - television, newspapers, and magazines.
A sales promotion budget should also be determined, allocating money for coupons, product samples, and trade promotions. Similarly, budgets are required for personal selling, distribution, and product development.