Promotional Budget

AAA

DEFINITION of 'Promotional Budget'

A specified amount of money set aside to promote a business' or organization's products or beliefs. Promotional budgets are created to anticipate the essential costs associated with growing a business or maintaining a brand name. The budget is often set according to a percentage of sales or profits in order to maintain the intended growth rate.

INVESTOPEDIA EXPLAINS 'Promotional Budget'

Advertising and promotion of a business is a cost which most businesses have a tough time predicting, which is why a percentage method might be used. If new product lines are set to release in the near future, the budget could be increased. High promotional budgets cut into profits in the period of use and are intended to increase sales or awareness in the future.

RELATED TERMS
  1. Budgetary Slack

    The intentional allowance for extra expenditures in a future ...
  2. Budget Committee

    A group of people that creates and maintains fiscal responsibility ...
  3. Annual Budget

    Any budget that is prepared for a 12-month period. An annual ...
  4. Brand Recognition

    The extent to which the general public (or an organization's ...
  5. Marketing Mix

    Usually referring to E. Jerome McCarthy's 4 P classification ...
  6. Promotion

    1.In terms of a career, a promotion refers to the advancement ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Home & Auto

    Don't Be Misled By Investment Advertising

    Investment companies and brokers want to sell. Unfortunately, this can result in promotional material that is not entirely frank, or far worse, truly misleading.
  2. Options & Futures

    Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.
  3. Entrepreneurship

    Can You Handle A Home-Based Business?

    Find out if you have the traits to be a top entrepreneur.
  4. Entrepreneurship

    Run Your Finances Like A Business

    Think of yourself as your own little company. To make it run smoothly, you need to take a look at your books.
  5. Budgeting

    How Budgeting Works For Companies

    Learn how to break down and understand a corporate budget.
  6. Options & Futures

    Starting A Small Business In Tough Economic Times

    We provide 6 tips for creating a winning business in a losing economy.
  7. Investing

    Multiple Myeloma: A Growing Market For Treatment

    American and European regulators have given Celgene Corporation the OK to begin marketing its top-selling myeloma drug Revlimid as a first-line therapy.
  8. Entrepreneurship

    Go To College Or Become An Entrepreneur?

    The rising cost of higher education and high unemployment rate following the Great Recession has caused many young people to question the value of college.
  9. Investing

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  10. Personal Finance

    How Pinterest Makes Money

    Unlike other social platforms, Pinterest actually caters to people who want more stuff.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center