Monday, February 3, 2020

Are you cutting at the right time?

One popular way of setting an A&P budget is by using a percentage of sales. When sales come down, naturally the A&P budget is cut. Therein lies this technique’s weakness. When sales are down, that’s when the brand needs the most support, but its budget is cut. This will put the brand in a vicious downward cycle. 

If your competitor is doing this, watch for it and go in for the kill.
If you are doing this, your competitor reads this too. She is waiting for the kill.

Is there a better way to budget?

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