The Objective-and-task method allocates a promotion budget by setting specific objectives and assigning enough funds to fulfill those tasks, aligning promotional activities with business goals within the available budget constraints.
The method that refers to an allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them is the Objective-and-task method. This method involves first setting specific marketing objectives and then estimating the cost of completing these tasks in order to achieve the objectives. It is concerned with allocative efficiency, ensuring that the mix of promotional activities reflects the preferences and goals of the business, much like allocative efficiency ensures the mix of goods produced is what society most desires.
The method contrasts with others like the Competitive parity method, which bases the budget on competitors' spending; the Percentage-of-sales method, where the budget is a set percentage of sales; and the All-you-can-afford method, where the budget is determined by the amount the company finds it can spend on promotion.
So, the Objective-and-task method is the most strategic approach, involving careful planning to ensure that promotional spending is directed toward achieving specific marketing goals within a company's budget constraint.