An Examination of Methods of Setting Advertising Budgets: Practice and the Literature

Abstract

Examines the methods companies have used for setting advertising budgets against the backdrop of the literature (textbooks and journals). Utilizes a checks and balances (triangulation) methodology of survey, personal interviews and case studies to examine in depth the nature, scope and dynamics of the advertising budgeting process. The advertising budget decision involves a dual problem and a three‐stage process. Findings indicate that the advertising budgeting methods in practice were more sophisticated than the earlier descriptions in the literature, but the literature is narrowing the gap with reporting of advertising budgeting practices by marketing‐oriented and successful companies. The inaccuracy in the earlier literature, which conveys a certain image of managers, is now being corrected with positive implications for teaching and academic/practitioner co‐operation and trust.

Citation

Mitchell, L.A. (1993), "An Examination of Methods of Setting Advertising Budgets: Practice and the Literature", European Journal of Marketing, Vol. 27 No. 5, pp. 5-21. https://doi.org/10.1108/03090569310039697