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. Why does zero-based budgeting require ongoing evaluation and management?

    Zero-based budgeting must have ongoing evaluation and management due to the fact a zero-based budget requires management ... Read Full Answer >>
  2. What risks does a business owner face under a business structure with unlimited liability?

    The risks that a business owner faces under a business structure with unlimited liability are literally unlimited, but they ... Read Full Answer >>
  3. How do I set up a Limited Liability Company (LLC)?

    The specific process and procedures for organizing a limited liability company (LLC) vary from state to state. However, the ... Read Full Answer >>
  4. How does quantifying fixed overhead volume variance show whether a company is profitable ...

    Fixed overhead volume cannot definitively prove a company is profitable, but it can be used to provide an excellent indication ... Read Full Answer >>
  5. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
  6. What is price variance in cost accounting?

    Price variance in cost accounting is the difference between the actual price paid by a company to purchase an item and its ... Read Full Answer >>
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. Options & Futures

    Starting A Small Business In Tough Economic Times

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

    How Budgeting Works For Companies

    Learn how to break down and understand a corporate budget.
  7. Personal Finance

    How Youtube Makes Money Off Videos

    YouTube's revenue is growing even if the profits aren’t, and some growth is better than nothing.
  8. Personal Finance

    How To Calculate ROI Of A Marketing Campaign

    To make the most of your marketing spend, you need to know how to measure its results.
  9. Entrepreneurship

    What is a Business?

    As a general term, business means the commercial activities of an individual or group engaging in some type of financial transaction.
  10. Markets

    The Story Of Zipdial's Success

    Here is how ZipDial formed and subsequently shot to success in the Asian market.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center