Macro budget allocation: How to manage budgets between markets and brands to maximize success

Mike Campbell

This article looks at optimising macro budget allocation between brands and markets and advises adding 'market attractiveness' factors to econometric models.
  • Most companies do not have a formal approach to budget allocation and competing brands in their portfolio, but applying strategic scoring to weight marketing investment based on a brand's potential to grow and thrive could help.
  • Difficulties with macro budget allocation include a lack of a culture of centralised decision making and budgets operated on a national instead of zonal level.
  • Marketers implementing strategic scoring need senior support, a transparent approach to budget allocation and clear objectives....

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