Question

Without doubt, the recommendation promotional budgeting technique is the objective and task approach. et, there is one major problem/ obstacle to overcome if one plans to use thath approach. what is major problem/obstacles associated with the objective and task approach?

Answer 1

Answer: difficulty of accurately assessing the advertising costs necessary to accomplish the goals

Explanation: Objective and Task control method; objective task control method is a system used by companies to allocates certain amount of money to to be used for it's marketing budget based on some objectives, rather than choosing a random amount or deciding it's marketing budget based on sales revenues or projections alone. This means advertising budget is based on set objectives. The challenge faced is their inability to correctly determine the cost necessary to accomplish the set objectives or goals.

Answer 2

Answer:

The major challenge is cost estimation.

Explanation

The objective and task method are one of the most widely and most accepted methods for budgeting for advertisements in a company.

It involves a series of very logical steps:

1. Defining the specific objectives of the Marketing Unit
2. Set advertising objectives in relation to profit, turnover, competitive stability, loyalty to the brand, etc.
3. break-down of objectives into actionable tasks
4. Forecast the cost associated with each of the actionable tasks defined within the period when it must be executed
5. Match all cost with budget

From the steps highlighted above, the primary challenge with utilizing the Problem/Obstacle approach to decision making it that it comes with the difficulty of correctly or accurately estimating the costs necessary to accomplish the goals.

Objectives, planning and breaking down tasks are all internal to the organization. The costs associated however is always external and outside of the control fo the budgeting team.

Cheers!