Question

In marketing, how is the budget typically allocated?

A) 10% to Place, Price, Packaging, and Product.
B) 90% to Promotion, including Positioning, Advertising, Sales Promotion, and PR.

Answer 1

In marketing, the budget allocation varies based on the company's objectives. It commonly includes allocations for place, price, packaging, product, and promotion.

Step-by-step explanation:

In marketing, the budget is typically allocated based on the specific objectives and needs of the company. There is no fixed or standard allocation of the budget. However, a common approach is to allocate different percentages to various marketing activities such as place, price, packaging, product, and promotion.

For example, a company may allocate a certain percentage of the budget to the development and maintenance of physical stores (place), determining the optimal price for their products (price), designing attractive and effective packaging, and ensuring the quality and appeal of their products (product).

In terms of promotion, companies often allocate a significant portion of their budget to advertising, sales promotion, public relations, and positioning. This is because promotion plays a crucial role in creating awareness, generating interest, and driving sales.