Discuss the factors that influence the advertisement budget decisions.

Discuss the factors that influence the advertisement budget decisions.

1.Stage of the product in the product life cycle: The company has to invest more at the time the product is newly introduced in the market as at this stage the consumers have to be informed about the product as they are totally unaware about the existence of the new product in the market. At a late stage when the product gains popularity, it can cut down the costs of advertising.

2.The market share of the company: If the company enjoys a high market share, it can spend on widespread advertising while if it is low, but the market holds good prospects, the organisation can still spend heavily on advertisement.