Qualitative Research: Setting Advertising and Promotion Budgets in Multi-Brand Companies

George S Low and Jakki Mohr

This study, based on depth interviews with 21 experienced frontline brand managers and high level senior managers, focuses on improving the understanding of the advertising and sales promotion budget allocation decision and identifying factors that enhance or impede effective decision making, in the USA.

Setting Advertising and Promotion Budgets in Multi-Brand Companies

George S. Low Texan Christian University andJakki J MohrUniversity of Montana

'The most common way that brand managers set budgets is to start the same as last year. At least last year's budget produced last year's results. I've rarely seen zero-based budgeting. The budget and its allocation is typically based on the marketing plan and what needs to be accomplished. Judgment is very much a part of the decision making process. Models are rarely used.`

-Senior Marketing...

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