The-definition.com

Definition

Affordable method

Affordable method- setting the promotion budget at the level management thinks the company can afford. Small business often uses this method, reasoning that the company cannot spend more on advertising than it has. They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to advertising.

Share it:  Cite

More from this Section

  • Segmentation basis
    Segmentation basis is the market can be segmented by the general categories of demographics, ...
  • Product bundle pricing
    Product bundle pricing means combining several products and offer the bundle at a reduced ...
  • Cash Discount
    Cash Discount is a discount given to buyers for cash rather than credit purchase. ...
  • Total customer value
    Total customer value is the perceived monetary value of the bundle of economic, functional, ...
  • Purchasing agents
    Purchasing agents– generally have a long-term relationship with buyers and make purchases ...