Posted in Marketing and Strategy Terms, Total Reads: 2791
Definition: Affordable Method
It refers to spending capability of a firm on its marketing activities. This spending capability is encapsulated in the marketing budget prepared by the marketing department. This budget is not based on any objective method and hence has the inherent flaw that the firm might overspend or under spend in some cases. This budget is usually based on a marketer’s intuition and current revenues and focuses on reducing costs. This method is employed in small business organizations.