With the all-you-can-afford method,the marketing manager focuses on the competitive marketplace and specifically on comparing promotion expenditures across all key competitors in the market to find a budget number that matches.

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With the all-you-can-afford method, a firm simply sets its promotion budget as whatever funds are left over after everything else that's considered a necessity is paid for. Many small business owners and entrepreneurs find themselves using this approach, and it is maximally self-defeating. For years, the Small Business Administration (SBA) has published data on key reasons that business plans fail to gain funding and also key reasons for start-up failures. Consistently, one of the major reasons for both is a poorly conceived and underfunded promotion budget.

With the All-You-Can-Afford Method,the Marketing Manager Focuses on the Competitive