Calculating Marketing Budget

When I started this simulation, my goal was to make as much of a profit as possible. I went into the simulation with that mindset, but did not think about the strategy part of the goal. I believe this is where I went wrong. My first round was not bad, and I still came out with a small profit, but by my third round, it was nearly impossible to get out of the debt.

Banking industry is currently operating in the maturity stage. There are many players as a result of which the competition is quite high. Competition is broadly based on the levels of fees charged, reputation, the range of services and products provided. As the industry consolidates and the range of services broadens, the size and geographic spread of industry players in increasing. Providing a high set of barriers is the capital and regulatory requirements within the banking sector. Entities that want to start up as a commercial bank and/or investment bank or securities dealer face significant establishment costs in order to gain acceptance and meet market reputation. Furthermore, start-ups require up-front expenses in order to establish proper distribution channels. Globalization is high and the trend is increasing. Cross-border sales and acquisitions of banking operations are also occurring, as assets are shuffled in the race to raise capital.

Cost variance is a way of showing the financial performance of a project. It is the mathematical difference between budgeted cost of work performed, and the actual cost of work performed. Both budgeting and forecasting are financial projections. Looking at the differences between forecasting and budgeting, forecasting is broad in scope and part of strategic planning whereas a budget is more specific and detailed, with expenditure heads specifically matched to sources of income. Cost variances may be either positive or negative figures. Negative figures happen if you spend more on a project than you allowed in your budget.

38) Perhaps the most logical advertising budget-setting method is theobjective-and-taskmethod because it is based on spending necessary to accomplishing specific promotion goals.

Each objective provides a method of achieving the company’s goals. Objectives include a measurement capability allowing marketing employees to evaluate their ability to succeed at meeting their objectives. For example, a marketing goal of increasing product awareness might be supported by a marketing objective of contacting ten new customers each week.

Performance measures have been used to assess the success of organisations. The modern accounting framework dates back to the middle ages and since that time assessment of performance has predominantly been based on financial criteria (Burns, 1998). Double entry accounting systems were developed to avoid disputes and settle transactions between traders (Johnson, 1983). By the start of the twentieth century the nature of organisations had evolved and ownership and management were increasingly separated. As a result, measures of return on investment were applied so that owners could monitor the performance that managers were achieving (Johnson, 1983). Since that time

Today, banking industry plays a major role in the financial sector and does its business in a highly competitive environment with very low interest margins due to high competitiveness of the industry. Every bank in the industry is equipped with a high tech IT platform and operates its network for the benefit of its customers. A bank offers many products and services to increase its market share and focuses on customer service as the competitive advantage to grab more business.

If a new company wants to set their objective as a growth in profits this would be their primary objective but to achieve this, they have to develop various strategies. For each specific strategy, an objective has to be set

As an advertising director, Budget assignment ought to be Company have 8 million dollar plan to spend on diverse assets to attain to the showcasing goal

The primary source of data for research is interviews with bank executives. To confirm information collected by primary data, some documents published by banks were used as secondary data. The interviews were recorded and important points were collected. The whole research can be divided into three steps. First is general description of

BEING A RESEARCH PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) OF AHMADU BELLO UNIVERSITY,ZARIA NIGERIA

In making decisions concerning a bank 's strategy, the institution must take into account several initial areas that may formulate a restraint in implementation. They are the economic and cultural environment, the competitive banking atmosphere (extremely competitive), the marketing strategy to be implemented, and the pricing/promotion that goes into the marketing function. (McMahon, 1986).

Our case study is on the Columbia City Bank. First of all we would like to talk about the general inner workings of a bank. A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. In recent history, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on an array of deposit activities and ancillary services. Lending activities, however, still provide the bulk of a commercial bank's income. Beside, Banks make money from card products through interest payments and fees

For a bank to have the highest market share among other banks rendering identical services, there is a need for such bank to combine and blend the main factors (bank objectives, banks environmental (or non controllable) variables, the controllable (or management) variables, and bank’s organization and control variables) together into an overall strategy the customers.

The cost incurred by the function should be compared with the results accomplished e.g. sales volume achieved, gross margins achieved and net realization made.