Name and describe the methods for determining a marketing budget

What will be an ideal response?

(1 ) Percent-of-Sales Budget — The percentage of sales that a business uses is often based on previous experience, but it could vary from past experience depending on the nature of the strategic market plan that will be implemented. An aggressive growth strategy might require more than the normal percentage of sales to achieve share and sales objectives. On the other hand, a harvest strategy may slowly reduce marketing and sales expenses as a percentage of sales while market share is harvested over time.
(2 ) Customer-Mix Budget — The cost of customer acquisition and retention and the combination of new and retained customers are used to establish a customer-mix marketing and sales budget. Because the rate of new-customer acquisition can change the budget that is required, many market-based businesses see the customer-mix approach to funding the marketing and sales budget as the best approach.
(3 ) Bottom-Up Budget — A bottom-up approach to developing a marketing and sales budget specifies each marketing task and the amount needed to accomplish it, given a particular strategic market plan and the task-related marketing mix strategies.