Allocating the promotional budget: revisiting the advertising and promotion‐to‐sales ratio

Abstract

Examines in detail a recent model devised to explain the ratio of promotional expenditure to sales, based on only three variables: market growth, market share, and their interaction. Although its simplicity would suggest that it offers a powerful tool for managing promotional budgets, finds that when the model is applied to a particular consumer market, it is inadequate. Suggests and tests some improvements to the model.

Citation

Stewart, D. (1996), "Allocating the promotional budget: revisiting the advertising and promotion‐to‐sales ratio", Marketing Intelligence & Planning, Vol. 14 No. 4, pp. 34-38. https://doi.org/10.1108/02634509610121550