Question

You are hired as a marketing/promotions manager at a Major International Airport. Your boss just walked into your office in your first week on the job announcing that they have just entered into a partnership with a major airline that will be launching a new air travel route.

Your budget to promote this launch is $100,000 and you will have to provide rationale for the differences between the estimated and actual expenses. Additionally, your boss says the anticipated revenue forecasts are $1,000,000 in the first six months after launch to be shared by the partners.

Using the Budget Spreadsheet (xlsx), explain how you intend to stay within or go over the budget. Provide written rationale for your decisions and upload the completed recalculated spreadsheet and written paper with your answers. .

Answer 1

Answer:

I hope its helps you.

As per a recent survey by Delloite published in WSJ, among the fortune 500 companies, the marketing budget is generally about 5-8% in non- direct B2B consumer based companies. Looking at the revenue for next six months, the airport falls under this category and the budget provided is well within the market standards. So, I would stay within the budget of $100,000.

Also, I have divided the budget (digital, traditional, conventional print, etc.) as per industry standards that I researched from various sources.

Estimated vs. Actual

Social Networks: Actual cost is taken 10% below the estimated because these campaigns generally end before estimations or the eyeball target is achieved before the estimated campaign time.
Traditional Media: Actual is taken 20% higher than estimated considering campaign enhancement depending upon response.
Publicity: Actual is taken 10% higher than actual for real time costs.
Miscellaneous Market: Actual is taken 20% higher for real time costs.
Event management: Actual is taken 20% higher for real time costs.
Program: Apart from Performers fixed fee, all other are taken 20% higher than estimated.
Prizes: No variation. All good are ordered as per estimation.
As per a recent survey by Delloite published in WSJ, among the fortune 500 companies, the marketing budget is generally about 5-8% in non- direct B2B consumer based companies. Looking at the revenue for next six months, the airport falls under this category and the budget provided is well within the market standards. So, I would stay within the budget of $100,000.

Also, I have divided the budget (digital, traditional, conventional print, etc.) as per industry standards that I researched from various sources.

Estimated vs. Actual

8.Social Networks: Actual cost is taken 10% below the estimated because these campaigns generally end before estimations or the eyeball target is achieved before the estimated campaign time.

9.Traditional Media: Actual is taken 20% higher than estimated considering campaign enhancement depending upon response.

10.Publicity: Actual is taken 10% higher than actual for real time costs.

11.Miscellaneous Market: Actual is taken 20% higher for real time costs.

12.Event management: Actual is taken 20% higher for real time costs.

13.Program: Apart from Performers fixed fee, all other are taken 20% higher than estimated.

14.Prizes: No variation. All good are ordered as per estimation.
As per a recent survey by Delloite published in WSJ, among the fortune 500 companies, the marketing budget is generally about 5-8% in non- direct B2B consumer based companies. Looking at the revenue for next six months, the airport falls under this category and the budget provided is well within the market standards. So, I would stay within the budget of $100,000.

Also, I have divided the budget (digital, traditional, conventional print, etc.) as per industry standards that I researched from various sources.

Estimated vs. Actual

Social Networks: Actual cost is taken 10% below the estimated because these campaigns generally end before estimations or the eyeball target is achieved before the estimated campaign time.
Traditional Media: Actual is taken 20% higher than estimated considering campaign enhancement depending upon response.
Publicity: Actual is taken 10% higher than actual for real time costs.
Miscellaneous Market: Actual is taken 20% higher for real time costs.
Event management: Actual is taken 20% higher for real time costs.
Program: Apart from Performers fixed fee, all other are taken 20% higher than estimated.
Prizes: No variation. All good are ordered as per estimation.

As per a recent survey by Delloite published in WSJ, among the fortune 500 companies, the marketing budget is generally about 5-8% in non- direct B2B consumer based companies. Looking at the revenue for next six months, the airport falls under this category and the budget provided is well within the market standards. So, I would stay within the budget of $100,000.

Also, I have divided the budget (digital, traditional, conventional print, etc.) as per industry standards that I researched from various sources.

Estimated vs. Actual

15.Social Networks: Actual cost is taken 10% below the estimated because these campaigns generally end before estimations or the eyeball target is achieved before the estimated campaign time.

16.Traditional Media: Actual is taken 20% higher than estimated considering campaign enhancement depending upon response.

17.Publicity: Actual is taken 10% higher than actual for real time costs.

18.Miscellaneous Market: Actual is taken 20% higher for real time costs.

19.Event management: Actual is taken 20% higher for real time costs.

20.Program: Apart from Performers fixed fee, all other are taken 20% higher than estimated.

21.Prizes: No variation. All good are ordered as per estimation.