Types+of+Advertising

There are two types of advertising: organizational advertising or product advertising.

Organizational Advertising
Organizational advertising is designed to promote ideas, images, and issures associated with a company or organization. Benefits of the business or organization to customers or society are the main themes of the advertisement.

Product Advertising
Product advertising is used by organizations to sell specific products. A product advertisement can be identified by the identification of a specific product, service, or price in the advertisement.

** Determining the Advertising Budget **
There are four common methods of determining the amount of money that will be allocated for advertising.


 * What You Can Afford
 * In this system, organizations account for all of their other expenses and whatever is left over is budgeted for advertising.
 * Percentage of Sales
 * In this system, a percentage of past, current, or projected future sales is used for advertising. One drawback of this method is that advertising varies directly with sales. If sales are low, advertising expenditures will be limited.
 * Competition Matching
 * This system suggests that an organization should spend a similar amount of money on advertising as its competitors. Though it is reasonable to be aware of what your competitors are doing in terms of advertising, this method has serious drawbacks. One drawback is that competitors may have different advertising resources. Also, it is difficult to determine competitor's budgets until after the fact.
 * Objective and Task
 * This approache involves determining what should be achieved, identifying the tasks required to accomplish those tasks, and then computing the costs of each task. This is usually the best method to determine the amount of money that will be allocated for advertising.