What is the importance of budgeting in marketing and advertising?

WITHOUT BUDGET THERE SHALL BE NO MONEY AND WHEN NO MONEY IS THERE THAN NOTHING CAN HAPPEN. 

CAN YOU WORK WITHOUT MONEY ??? NO, SO ITS THE IMPORTANCE OF BUDGET 

Budgeting is the LIFE BLOOD of Marketing & Advertising.

Regardless of how revolutionary or amazing your product is, if you hope to sell it, you must spend money on advertising and marketing. To ensure that you use your advertising and marketing dollars in the most effective manner, you must budget your expenditures carefully and evaluate the effectiveness of those expenditures. As advertising and marketing budgets can become somewhat complex, it is important to use budgeting tools that are up to the task of keeping everything straight. Simple spreadsheet programs may prove effective for simpler advertising and marketing campaigns, but as they become more complicated, they may require specialized software. Various software companies offer online and offline budgeting tools, some for free and others for a price. Investigate the various tools available on the marketplace to see which is most suitable for your needs.Before you can start determining which aspects of advertising and marketing receive how much money, you must first determine how much you want or need to spend on advertising and marketing in general. The simplest way of determining the value of your budget is by deciding to spend a certain percentage of each month's revenue on advertising and marketing. If you have some idea of how much money it costs to sell each unit of your product, you might decide your advertising and marketing budget according to your sales goals. You can also take a more intensive approach, tying your budget to specific objectives you wish to accomplish, such as getting the attention of a certain amount of prospective buyers with television advertisements. After determining the total value of your advertising and marketing budget, you must itemize specific advertising expenses that you intend to incur. The two main methods of dividing up your advertising expenses are according to location and medium. For instance, if you have stores in Dallas, Houston and San Antonio, you may begin by apportioning advertising money according to the number of individuals in your target market in each area. After making that decision, you must then decide how much of your advertising money for each reason should go toward particular types of advertising, such as television, radio, printed media, billboards and location-specific Internet ads.Advertising is an important aspect of marketing, but it is not the only aspect. Outside of advertising, your budget should address other marketing expenses that you intend to incur. For instance, if you spend money to set up booths at trade shows or public events, this is a type of marketing. You may also incur expenses by employing people to maintain your company's Internet presence, offering special promotions through daily deal sites, writing blog entries and engaging potential customers through social media. When you offer special promotions that allow customers to acquire your products or services at discounted rates, although this does not constitute a direct expense, it is something that you must account for in your budget, as it decreases revenues.To evaluate the effectiveness of your budgeting, you must be able to gauge how much revenue or how many unit sales you received per dollar of each type of advertising or marketing. While differentiated sales channels makes tracking such numbers relatively easy when it comes to gauging online vs. offline advertising, things may get more complicated when you try to find which website referred the most customers or whether radio and television advertising are equally effective. To get an idea of such differentiations, ask your customers how they heard about you. You may ask them verbally or through a questionnaire

Budgeting is essential part in taking a commercial strategy.  Budgeting for Marketing determine the level of achievement expected in sales and also influence the pricing policy.  Higher the targeted sales means a liberalized customer oriented  pricing  to compete with the prevailing market situations. 

To reach the knowledge of the product and its extra features determine the Style of Advertisement required and the Budget for Advertisement.  The Pricing of products-an upward or down-ward revision--is determined by the benefit of Advertisement received to improvise the sale revenue with controlled administrative expenses including the amount spend on advertisement. Hence Budgeting for Advertisement require a very careful analysis as this is one of most expensive in nature and we can choose range-bound.  Effective and Efficient advertisement   strategy may bring down the prices of the product on account of sales and marketing advantage.

As we see the organizations are now focusing on cost minimization and as far as budgeting is concerned it is very important for every aspect of a business. Budgeting for marketing is very important primarily it helps in pricing the product or service which company is going to market.

Budgeting of specific marketing strategy also helps in giving ideas for the budgeting and planning of future marketing strategy and also help in cost benefit analysis of a strategy.

Budgeting is the way of calculations made as per the usage or the wastage of product (materials or goods )made in the store in oder to have the correct margin between the total profit and loss made by the store.

Budgeting as the word is self explanatory : Without this we are just talking in air. with plans on paper . So everything should have a predetermined Plan Of expenditure  linked with it . And the Stage Of Issuing that as Allotment . We know the limitation -we will act accordingly & result will have a clear cut understanding that vis a vis -planned, the expenditure was in line to the planned budget approved by seniors / managent as the case may be .