Determining the appropriate promotional budget is an important decision within any marketing strategy. Firms that set the budget too low risk blending into the competition and are often ineffective in communicating value to potential customers. Firms that set the budget too high open themselves up to waste and lower profits. Promotional budget decisions should consider a variety of factors, such as the types of products sold by the firm, the geographic location of the firm's customers, and the level of competition in the industry. Firms typically determine their promotional budget using one of three methods: (1) the affordable method, (2) the percentage-of-sales method, or (3) the objective-and-task method.

Blanchard and peale am i in compliance with the law? what contribution does this choice of action make to the company, the shareholders, the community, and others? what are the short- and long-term consequences of this decision? 1. make sure you have a grasp of all of the facts available. 2. list any information you would like to have but don't and what assumptions you would have to make, if any, in resolving the dilemma. 3. take each person involved in the dilemma and list the concerns they face or might have. 4. develop a list of resolutions for the problem. 5. evaluate the resolutions for costs, legalities, and impact. 6. make a recommendation on the actions that should be taken. "contemplating any business act, an employee should ask himself whether he would be willing to see it immediately described by an informed and critical reporter on the front page of his local paper, there to be read by his spouse, children, and friends." is it legal? is it balanced? how does it make me feel?