Answer to Question #245204 in Marketing for Mandy

Question

There are various budgeting methods that The Sneaker Shack could use when setting
a budget for their promotional campaign. Identify which method you think is most suited
for The Sneaker Shack’s promotion strategy (1 mark). Motivate why you think this would
be the best budget method to use (1 mark).

Answer 1

The Sneaker Shack could create a budget for its promotional campaign using a variety of budgeting approaches. The Goal-and-Task Method, in my opinion, is best suited or appropriate for The Sneaker Shack's promotion plan. Rather than choosing an arbitrary amount or basing its marketing budget solely on sales revenues or estimates, the technique entails giving a specified amount of money to its marketing budget based on specific objectives. The Sneaker Shack company will establish goals, assign jobs, and calculate expenditures.The budget does not take into account prior sales statistics or marketing expenditures, nor does it consider what competitors are doing. Rather, it keeps expenditure focused on the company's most important objectives.