Definition of 'Advertising Budget'

An estimation of a company's promotional expenditures over a period of time. An advertising budget is the money a company is willing to set aside to accomplish its marketing objectives. When creating the advertising budget, a company must weigh the trade-offs between spending one additional advertising dollar with the amount of revenue that dollar will bring in as revenue.

Investopedia explains 'Advertising Budget'

Companies can determine what level to set their advertising budget several different ways, each of which has its positives and negatives. A business can set its budget as a percentage of sales, at the same level as its competitors, as the amount required to meet a certain objective, as the entirety of its profits or as a function of the units of product it wants to sell among others. Read more: http://www.investopedia.com/terms/a/advertising-budget.asp#ixzz2F1kflH70 Advertising Budget is the amount of money which can be or has to be spent on advertising of the product to promote it, reach the target consumers and make the sales chart go on the upper side and give reasonable profits to the company. Before finalizing the advertising budget of an organization or a company, one has to take a look on the favorable and unfavorable market conditions which will have an impact on the advertising budget. The market conditions to watch out for are as follows:

Frequency of the advertisement Competition and Clutter Market Share of the Product Product Life Cycle Stage

1. Frequency of the Advertisement

This means the number of times advertise has been shown with the description of the product or service, in the granted time slots. So here, if any company needs more advertising frequency for its product, then the company will have to increase its advertising budget.
2. Competition and Clutter

The companies may have many competitors for its product. And also there are plenty of advertisements shown which is called clutter. The company has to then increase their advertising budget.

3. Market Share

To get a good market share in comparison to their competitors, the company should have a better product in terms of quality, uniqueness, demand and catchy advertisements with resultant response of the customers. All this is possible if the advertisement budget is high.
4. Product Life Cycle Stage

If the company is a newcomer or if the product is on its introduction stage, then the company has to keep the budget high to make place in the market with the existing

players and to have frequent advertisements. As the time goes on and product becomes older, the advertising budget can come down as then the product doesnt need frequent advertising

Advertising Budget
The advertising budget of a business is typically a subset of the larger sales budget and, within that, the marketing budget. Advertising is a part of the sales and marketing effort. Money spent on advertising can also be seen as an investment in building up the business. In order to keep the advertising budget in line with promotional and marketing goals, a business owner should start by answering several important questions:
1. Who is the target consumer? Who is interested in purchasing the product or service, and what are the specific demographics of this consumer (age, employment, sex, attitudes, etc.)? Often it

is useful to compose a consumer profile to give the abstract idea of a "target consumer" a face and a personality that can then be used to shape the advertising message. 2. What media type will be most useful in reaching the target consumer? 3. What is required to get the target consumer to purchase the product? Does the product lend itself to rational or emotional appeals? Which appeals are most likely to persuade the target consumer? 4. What is the relationship between advertising expenditures and the impact of advertising campaigns on product or service purchases? In other words, how much profit is likely to be earned for each dollar spent on advertising?

Answering these questions will help to define the market conditions that are anticipated and identify specific goals the company wishes to reach with an advertising campaign. Once this analysis of the market situation is complete, a business must decide how best to budget for the task and how best to allocate budgeted funds.

BUDGETING METHODS
There are several allocation methods used in developing a budget. The most common are listed below:

Percentage of Sales method Objective and Task method Competitive Parity method

Market Share method Unit Sales method All Available Funds method Affordable method

It is important to notice that most of these methods are often combined in any number of ways, depending on the situation. Because of this, these methods should not be seen as rigid but as building blocks that can be combined, modified, or discarded as necessary. Remember, a business must be flexibleready to change course, goals, and philosophy when the market and

the consumer demand such a change.

Percentage of Sales Method

Due to its simplicity, the percentage of sales method is the most commonly used by small businesses. When using this method an advertiser takes a percentage of either past or anticipated sales and allocates that percentage of the overall budget to advertising. But critics of this method charge that using past sales for figuring the advertising budget is too conservative, that it can stunt growth. However, it might be safer for a small business to use this method if the ownership feels that future returns cannot be safely anticipated. On the other hand, an established business, with well-established profit trends, will tend to use anticipated sales when figuring advertising expenditures. This method can be especially effective if the business compares its sales with those of the competition (if available) when figuring its budget.
Objective and Task Method

Because of the importance of objectives in business, the task and objective method is considered by many to make the most sense and is therefore used by most large businesses. The benefit of this method is that it allows the advertiser to correlate advertising expenditures with overall marketing objectives. This correlation is important because it keeps spending focused on primary business goals. With this method, a business needs to first establish concrete marketing objectives, often articulated in the "selling proposal," and then develop complementary advertising objectives

articulated in the "positioning statement." After these objectives have been established, the advertiser determines how much it will cost to meet them. Of course, fiscal realities need to be figured into this methodology as well. Some objectives (expansion of area market share by 15 percent within a year, for instance) may only be reachable through advertising expenditures beyond the capacity of a small business. In such cases, small business owners must scale down their objectives so that they reflect the financial situation under which they are operating.
Competitive Parity Method

While keeping one's own objectives in mind, it is often useful for a business to compare its advertising spending with that of its competitors. The theory here is that if a business is aware of how much its competitors are spending to advertise their products and services, the business may wish to budget a similar amount on its own advertising by way of staying competitive. Doing as one's competitor does is not, of course, always the wisest course. And matching another's advertising budget dollar for dollar does not necessarily buy one the same marketing outcome. Much depends on how that money is spent. However, gauging one's advertising budget on other participants' in the same market is a reasonable starting point.
Market Share Method

Similar to competitive parity, the market share method bases its budgeting strategy on external market trends. With this method a business equates its market share with its advertising expenditures. Critics of this method contend that companies that use market share numbers to arrive at an advertising budget are ultimately predicating their advertising on an arbitrary guideline that does not adequately reflect future goals.
Unit Sales Method

This method takes the cost of advertising an individual item and multiplies it by the number of units the business wishes to sell. This method is only effective, of course, when the cost of advertising a single unit can be reasonably determined.
All Available Funds Method

This aggressive method involves the allocation of all available profits to advertising purposes. This can be risky for a business of any size it means that no money is being used to help the business grow in other ways (purchasing new technologies, expanding the work force, etc.). Yet this aggressive approach is sometimes useful when a start-up business is trying to increase consumer awareness of its products or services. However, a business using this approach needs to make sure that its advertising strategy is an effective one and that funds which could help the business expand are not being wasted.
Affordable Method

With this method, advertisers base their budgets on what they can afford. Of course, arriving at a conclusion about what a small business can afford in the realm of advertising is often a difficult

task, one that needs to incorporate overall objectives and goals, competition, presence in the market, unit sales, sales trends, operating costs, and other factors.

MEDIA SCHEDULING
Once a business decides how much money it can allocate for advertising, it must then decide where it should spend that money. Certainly the options are many, including print media (newspapers, magazines, direct mail), radio, television (ranging from 30-second ads to 30-minute infomercials), and the Internet. The mix of media that is eventually chosen to carry the business's message is really the heart of the advertising strategy.
Selecting Media

The target consumer, the product or service being advertised, and cost are the three main factors that dictate what media vehicles are selected. Additional factors may include overall business objectives, desired geographic coverage, and availability (or lack thereof) of media options.

Laser
From Wikipedia, the free encyclopedia Jump to: navigation, search "Laser light" redirects here. For the song, see LaserLight. For other uses, see Laser (disambiguation).

United States Air Force laser experiment

Red (635 nm), green (532 nm), and blue-violet (445 nm) lasers

A laser is a device that emits light (electromagnetic radiation) through a process of optical amplification based on the stimulated emission of photons. The term "laser" originated as an acronym for Light Amplification by Stimulated Emission of Radiation.[1][2] The emitted laser light is notable for its high degree of spatial and temporal coherence. Spatial coherence is typically expressed through the output being a narrow beam which is diffraction-limited, often a so-called "pencil beam." Laser beams can be focused to very tiny spots, achieving a very high irradiance, or they can be launched into beams of very low divergence in order to concentrate their power at a large distance. Temporal (or longitudinal) coherence implies a polarized wave at a single frequency whose phase is correlated over a relatively large distance (the coherence length) along the beam.[3] A beam produced by a thermal or other incoherent light source has an instantaneous amplitude and phase which vary randomly with respect to time and position, and thus a very short coherence length. Most so-called "single wavelength" lasers actually produce radiation in several modes having slightly different frequencies (wavelengths), often not in a single polarization. And although temporal coherence implies monochromaticity, there are even lasers that emit a broad spectrum of light, or emit different wavelengths of light simultaneously. There are some lasers which are not single spatial mode and consequently their light beams diverge more than required by the diffraction limit. However all such devices are classified as "lasers" based on their method of producing that light: stimulated emission. Lasers are employed in applications where light of the required spatial or temporal coherence could not be produced using simpler technologies. Introduction/Motivation (Return to Contents) When you think of a laser, what characteristics come to your mind? How do lasers compare to flashlights? What do you know about the color or the radius of the laser's beam? What uses

readily come to mind when you think of lasers in today's society? Did you know the first use of a laser came in the 1970s in grocery store scanners? How about medical applications today do you know of any? Today, we will explore the answer to all of these questions. In addition, (in the associated activity) you will work in the computer lab in small groups to explore specific types of lasers and create presentations to share our findings with the class. With the conclusion of the presentations, you should know exactly what type of laser would be best for use in your security system design. Even further, you will know exactly why we are using a laser based security system to invisibly detect the presence of a thief. (Next, conduct the two class demonstrations as described in the Lesson Background and Concepts for Teacher section. Then, proceed with the following brief lecture material.) How Lasers Work (Lecture Material) Lasers play many roles in our everyday lives, from optical storage (CDs and DVDs) to metal cutting to tattoo and hair removal. Not everyone knows that laser is actually an acronym. (Take guesses from students.) Laser stands for light amplification by stimulated emission of radiation. Referring back to the particle theory of light, which has led us to today's quantum physics, we know that atoms struck by light waves (electromagnetic radiation) begin to vibrate causing their electrons to jump to higher energy levels until the atoms reach an excited state. When the atoms begin to relax, their energy is released in the form of photons, which are simply pockets of light energy. A laser is a device that controls this release of photons (pockets of light energy). Characteristics of Laser Light Laser light is described as coherent, monochromatic and collimated.

The property of coherency is distinct to lasers; it means that laser light waves are in phase and the photons move in step with one another. This property explains why laser beams are very narrow and show little divergence. Photon Secondly, laser light is monochromatic, which means that the light emission. waves are consistently of one wavelength. This results from the fact Photons are that the released photons originate at one set of atomic energy levels pockets of light only. energy. Lastly, laser light is described as being collimated, meaning laser copyright waves run parallel to one another and perpendicular to mirrors at either end of the laser cavity. This helps to prevent divergence and sustain amplification, as compared to a flashlight for example.

Laser Uses Lasers found their first use in the 1970s in local grocery stores, in the product scanner. The next major accomplishment for laser technology was the CD player. Today, uses span from hospitals to battlefields, to electronics, to factories. Here are some examples:

In medicine: surgical treatment, vision treatment, kidney stone treatment, dentistry, hair removal, skin treatment, tattoo removal, etc. In the military: missile guidance, radar replacement, target guidance, etc. In electronics: CDs, DVDs, laser printers, holograms, barcode scanners, etc. Factories: cutting, welding, heating materials, etc.

In short, engineers and scientists have determined a way to stimulate high-energy release and guide its output toward accomplishing productive and useful tasks. (Next, have students conduct the associated activity, Researching Types and Uses of Lasers, in which they research assigned laser types and present their findings to the class. Each member of the class is responsible for taking notes on the presentations using the activity handout.)

Foreign direct investment

From Wikipedia, the free encyclopedia Jump to: navigation, search

Foreign direct investment (FDI) is direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. . Foreign direct investment is in

contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. As a part of the national accounts of a country, and in regard to the national income equation Y=C+I+G+(X-M), I is investment plus foreign investment, FDI refers to the net inflows of investment(inflow minus outflow) to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.[1] It is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.[2] FDI is one example of international factor movements.

Importance and barriers to FDI

The rapid growth of world population since 1950 has occurred mostly in developing countries. This growth has not been matched by similar increases in per-capita income and access to the basics of modern life, like education, health care, or - for too many - even sanitary water and waste disposal. FDI has proven, when skillfully applied, to be one of the fastest and highest means of development. However, given its many benefits for both investing firms and hosting countries, the level possible to meet potential and needs has been difficult. Recently, research and practice are finding ways to clarify the local situation and to suggest contractual and policy tools the make FDI more assured and beneficial.
Foreign direct investment and the developing world

A recent meta-analysis of the effects of foreign direct investment on local firms in developing and transition countries suggests that foreign investment robustly increases local productivity growth. [3] The Commitment to Development Index ranks the "development-friendliness" of rich country investment policies. ][;[;[;
Difficulties limiting FDI

Foreign direct investment may be politically controversial or difficult because it partly reverses previous policies intended to protect the growth of local investment or of infant industries. When these kinds of barriers against outside investment seem to have not worked sufficiently, it can be politically expedient for a host country to open a small "tunnel" for FDI. To secure greater benefits for lesser costs, this tunnel need be focused on a particular industry and on a closely negotiated, specific terms. These terms define the trade offs of certain levels and types of investment by a firm, and specified concessions by the host country. Of course, there are (like many segmented marriage markets) 'match-making' implicit markets, and unpredictable "courtships" with rapidly shifting terms. Because local circumstances and the

global economy vary so rapidly, not only is the value of FDI with some industries, some companies, and some countries much greater than with others, but the valuations can shift dramatically in short times and at time quite irrationally. These uncertainties can make negotiating and planning FDI even more irrational. The risk premiums involved have been major barriers for FDI in many countries. The investing firm needs sufficient cooperation and concessions to justify their business case in terms of lower labor costs, and the opening of the country's or even regional markets at a distinct advantage over (global) competitors. The hosting country needs sufficient contractual promises to politically sell uncertain benefits -- versus the better-known costs of concessions or damage to local interests. The benefits to the host may be: creation of a large number of more stable and higher-paying jobs; establishing in lagging areas centers of new economic development that will support attracting or strengthening of many other firms without so costly concessions; hastening the transfer of premium-paying skills to the host country's work force; and encouraging technology transfer to local suppliers. Concessions or "cooperations" commonly offered include: tax exemptions or reductions; construction or cheap lease-back of site improvements or of new building facilities; and large local infrastructures such as roads or rail lines; More politically difficult (certainly for lessdeveloped regions)are concessions which change policies for: reduced taxes and tariffs; curbing protections for smaller-business from the large or global; and laxer administration of regulations on labor safety and environmental preservation.

Types
1. Horizon FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI.[4] 2. Platform FDI 3. Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country.[4]

Horizontal FDI decreases international trade as the product of them is usually aimed at host country; the two other types generally act as a stimulus for it.

Methods
The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods:

by incorporating a wholly owned subsidiary or company anywhere by acquiring shares in an associated enterprise

through a merger or an acquisition of an unrelated enterprise participating in an equity joint venture with another investor or enterprise

Foreign direct investment incentives may take the following forms:[citation needed]

low corporate tax and individual income tax rates tax holidays other types of tax concessions preferential tariffs special economic zones EPZ Export Processing Zones Bonded Warehouses Maquiladoras investment financial subsidies soft loan or loan guarantees free land or land subsidies relocation & expatriation infrastructure subsidies R&D support derogation from regulations (usually for very large projects)

FDI India
The steadily growing one of the major economies of the world, India has been enjoying huge and regular FDI from diverse investors of all around the world for the last few decades. According to a recent UNCTAD (United Nations Conference on Trade and Development) Survey, India has emerged out as the second most famous and popular destination in the world for FDI, after China. Majority of this foreign direct investment in india is made in the sectors of telecommunication, computer hardware and software, construction, and services, by investor companies from USA, UK, Singapore, Mauritius, etc. The foreign direct investment in india can be made in a variety of ways and in a rather wide range of economic sectors. Worldwide prominent Global Jurix has been helping individuals, associations, private and public companies/organizations, and institutions of diverse sectors for making their cherished FDI in India, through both the Automatic and

Government Routes, for a long time.