DSpace at VNU: Some methodical problems on allocating budget for marketing activities of enterprise

VNU. JOURNAL OF SCIENCE, ECONOMICS-LAW, N01E, 2004

SOME M ETHODICAL PRO BLEM S ON ALLOCATING BUDGET FO R
MARKETING ACTIVITIES OF E N T E R P R ISE
Vu P h u o n g T h a o ’’

thro ug h controlling the
im plem en tatio n process.

Some b u sin ess m an ag ers often assu m e
th a t allocating budget for m ark e tin g
activities of e n terp rises is the ‘’figure
chewing w o rk ”, aim ing a t controlling, b u t

in pu t

of

the

M ark etin g
bud geting
provides
inform ation for the general financial
d e term in a tio n process of e n terp rises. A
financial plan which is based on specific
figures and is practical will en su re

not m ark etin g. This point of view is
completely erroneous. M arketing budgeting
is a kind of decision which m a tte rs the

m a rk e tin g m a n a g e m e n t of any e n terp rises
because m a n a g e rs ’ efforts in budgeting
bring c e rta in a d v an ta g e s to th e m ark e tin g
m a n a g e m e n t and b u sin ess operations of
en terprises.
The a d v an ta g e s are as
follows:

e n terp rises to exist steadily.
Therefore, th e
businesses need
im portance
of
a rra n g e m e n t and
work in reality.

The
m ark e tin g
division
can
im plem en t
m ark e tin g
s tra teg ies
and
specific p lan s in every period. Budgeting
en sures th e capacity of providing financial
resources for m ark e tin g a rra n g e m e n t and

m a rk e tin g m a n a g e rs of
to be aw are of the

budg etin g
and
the
im p lem en tatio n of this

The n a tu r e of m a rk e tin g b u d g e tin g in
e n terp rises is th a t m a n a g e rs m u st find out
the a n sw e rs to th e two questions below:
First, how much do e n te rp ris e s need to
spend on th e e n tire m arketing?

im p lem en tation in a p la n n ed period.

Second, how is th e bu d get allocated to
th e variables of M ark etin g Mix, each
ta rg e t m a rk e t and each product to ensure
th a t th e capital invested in m a rk e tin g will

- The b u d g e t defines th e restrictions
suitable for each m a rk e tin g activity to
achieve th e set-up objectives.
- B udgeting creates th e prem ise for the
m a n ag e r of each m a rk e tin g division to
combine the operations w ith th e m an ag ers
of o ther divisions and cre ate s th e basis for
a rb itra tin g the differences in operation
among divisions.

gain a high goal?
In this article, we will only a d d re ss to

the first one.

1. T h in gs th at N eed to be C onsidered
w h e n P la n n in g th e B u d g e t for the
M ark etin g o f E n terp rise s

- B ud g eting is the s ta n d a rd which
m a rk e tin g m a n a g e rs use to m easu re the
progress ra te of im p le m e n tin g work

To a n sw e r th e question: ‘’How much do
e n terp rises need to spend on m ark eting ?’,
the m a rk e tin g m a n a g e r needs to find that
m a rk e tin g cost is a p a r t composing of the

n Dr., Faculty of Econom ics, V ietnam National
U niversity, Hanoi.

63


Vu Phuong T h a o

64

cost price of a product. Thus, if th e expense
of m ark etin g is high, th e cost price will be
high and to gether w ith it, th e selling price
will be high. T he high level of selling price
can have im pact on th e selling qu an tity . It

e n te rp ris e s a d m it th a t th e purpose of
m axim izing profits is th e m ain p e rm a n e n t
objective of th e m a rk e tin g decisions of
en terprises, th e y will define the cost level
u n d e r th e w ay to g ain th e m axim um

can curtail the* selling q u a n tity of
enterp rises and th u s, e n te rp ris e s w on’t
probably gain th e g en eral objectives as
well as the m a rk e tin g ones set up in th e
planned period. Therefore, w h en pla n n in g
the budget for m ark etin g , m a n ag e rs
should b e ar in m ind t h a t the more
m ark etin g cost they save, th e better.

profits.

On the o th e r h a n d , m a rk e tin g cost is
the capital inv ested in c re atin g th e
prestige of e n te rp ris e s to th e ir custom ers.
The more prestigious e n te rp ris e s a re in
the
m arket,
th e
more
com petitive
a d v antages th e y have. C re atin g prestige
for custom ers re q u ire s th e e n tire process.
Thus, w hen budgeting, m a n ag e rs of

en terp rises should ta k e th e view of
a p pro priate in v e stm e n t for m a rk e tin g
based on th e ir own financial resources for
creating prestige of th e ir tr a d e m a r k in th e
m arket.

2. T h eoretical B a ses o f B u d g e tin g
2.1. The Theory o f M a x im iz in g P r o fits
All business decisions aim a t gaining
certain purposes. The m ost p o p u lar a n d
p e rm a n e n t purpose p u rs u e d by busin ess
m an agers

is

to

m axim ize

profits.

The model of m axim izing profits is
based on two m ain a ss u m p tio n s below:
+ The income from each u n it of cost
added to m a rk e tin g efforts te n d s to
decrease w h en th e cost level of expenses
continues growing. The deep er the m a rk e t
w as p e n e tra te d , th e more difficult the
chances to gain an ad d ed level of tu rn o v e r
become.

+ To g a m a n ad d ed u n it of m ark etin g
effort, e n te rp ris e s h av e to w aste more
resources becau se effective m eans are
alw ays chosen a t first, less effective m eans
are often u sed afterw ard .
Economic
th eo ries
suggest
th a t
m a n a g e rs
should
con tin ue
to raise
expenses for m a rk e tin g efforts un til the
m arginal income or th e m arginal tu rn o v e r
is still bigger t h a n th e m a rg in a l m ark etin g
cost. M a n a g e rs should only m ain tain
m a rk e tin g e x p e n d itu re at th e level th a t
the m a rg in a l sp en d in g for m arketing
efforts b a lan c e s th e m a rg in a l income or
th e m arg in al tu rn o v e r.
The g ra p h below illu s tra te s this.

If

V NU, Jo urnal o f Science, E conom ic S-Lan . N J E . 2004


Some methodical p roblem s on allocating budget for.

65

T u rn o v e r

M a rk e tin g effort
Effective
m ark etin g
activities

2.2.
The
R e la tio n s h ip
M a r k e tin g E fforts a n d T u rn over

Profits
m axim al
p a th

betw een

W hen
applying
th e
theory
of
m aximizing profits, m a n a g e rs should know
th a t both th e to ta l profits and real
m arginal profits a re s tip u la te d by the level
of turnover. Therefore, it is necessary to
exam ine th e level of tu rn o v e r created from

a certain q u a n tity of cost. T he relationship
of th e level of tu rn o v e r (Q) and m ark etin g
cost (C) is called T u rn o v e r Satisfying
Function.
The
re la tio n sh ip s
of
satisfying
tu rn o v e r
a re
ex am in ed
w ith
two
assum ptions.
- First, th e m a rk e t is basically stable in
te rm s of size a n d competition.
- Second, th e re a re no changes in
m ark etin g s tra te g ie s d u rin g th e tim e we
survey.

VNU. Journal o f Science, E conom ic S-Law, N„IE, 2004

'Ineffective
m a rk e tin g
activities

T here a re four p rim a ry
tu rn o v e r satisfying function.

models

of

+ The F irst M odel
The re latio nship betw een tu rn o v e r and
m a rk e tin g effort is linear. The increase in
m a rk e tin g effort will add to the turnover
a n d profit. Given th a t if en terp rises w an t
to increase the tu rn o v e r a n d profit, they
have to try to raise th e m a rk e tin g budget
to the m axim al level. The m ark etin g cost
is th e capital t h a t e n te rp ris e s invest for
th e ir prestige. The hig h er the prestige is,
th e more possible it is to create a greater
sale volume.
Therefore, in th e ir certain financial
circum stances, e n te rp ris e s should spend
on m a rk e tin g as m uch as possible.
+ The Second M odel
W hen th e level of tu rn o v e r is directly
proportional to the level of m ark etin g cost,
b u t the total of cost h a s to reach a certain


Vu Phuong Thao
66____________ —

-- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Second, th e grow ing m ark etin g cost

will re s u lt in the in c re ase in the selling
price. In its tu rn , th e increase in the
selling price will raise th e sale quantity.
This case is called g ra d u a lly decreasing
effect. This tu rn o v e r satisfying function

mĩm m vun level* it will in c re a s e the
ÍU t‘ h a t th e tu r n o v e r a n d rprofit
turnover", Ỉ.n
.y
e 1 'his case is called th re sh o ld
will rise
T
This t u r n o v e r sa tisfy in g function
eitcct. i 11
th a t e n te r p r is e s sh o u ld n o t spend
l t t l e o*1 m a r k e tin g b e c a u se th e cost
, I
<rư> low d o e sn ’t c re a te m otivation
which IS
_0cr: t h e tu r n o v e r as well as
to increase
f

shows t h a t if th e tu rn o v e r w a n ts to be
effective in using in v e s tm e n t capital for
m arketing, e n te rp ris e s ne ed to define the
restriction of m a rk e tin g cost.

rises doesn t s p e n d a n y m oney on

marketing-

+ The Fourth M odel

+ T h e T'u r d M o d e l

This is th e com bination of the two
cases above. The “S” sh a p e d curve of the
tu rn o v e r satisfying function shows th a t

The l e ^ ° f tu r n o v e r is inversely
proportionaal :o t h e level of m a rk e tin g cost,
each level of a d d itio n a l effort
In this c&s*.
ill create jr.e level of g ra d u a lly satisfying
turnover vt first, w h e n in c re a s in g the
1
cost, th e t u r n o v e r will get the
marketing
” k

the tu rn o v e r level d ep en d s on how the
m a rk e t satisfies th e different levels of
m arketing. T he re la tio n sh ip betw een the
tu rn o v e r an d m a rk e tin g effort is not
always linear. W hen budgeting, m anag ers
need to consider th e fe a tu re s of the ta rg e t
m ark et, which re g u la te th e size an d the
features of th e m a rk e t d em an d , in other

words, th e satisfaction of the ta rg e t
m a rk e t to m a rk e tin g effort.

real m arginal one or will n o t cre ate
aỊ marginal tu r n o v e r b e ca u se of the

’

fcllovriag reasons:
p
the m a rk e t is re g u la rly lim ited
.
if size. T h e c o n s u m e rs a t a
in tern*
line
certair. U
I* will re a c h th e s a tu r a ti o n of
^vorUfts. In s te a d of in c re a s in g the
usiĩự pr-H
turnover fCBle, th e a d d itio n a l m a rk e tin g
cr oai1 ia'e an inverse effect,
effort

A

3
/

Q

T u rn ov er satisfying functions
described on th e g ra p h s below:

are

Q Ỹ

j

Q

/
/

N.
/

/
/
/

-----

Model 2

w

w
Q

Model 3

c

Model 4

VNU. Journal o f Science, E conom ics-Law . N„1E, 2004


Some m ethodical problem s on allocating budget for...
—

3. T ec h n iq u es o f M ark etin g B u d g etin g
in E n terp rise s
For m an ag ers, th e application of the
theories m entioned above in order to make
a decision on b u d g e t in reality is very h ard
because of th e following reasons:
- First, m a n a g e rs have too little or do
not have a n y d a ta to m easu re the
relationships betw een m a rk e tin g expense
and tu rn o v e r satisfaction. In addition, the
re q u ire m e n ts for tim e a n d necessary cost
for collecting a n d processing these d a ta to
get essential inform ation m ake en terp rises
hesitate to m e asu re these relationships.
- Second, th e re latio n ships of tu rnover
satisfaction m entioned above are based on
certain
suppositions.

In
fact,
these
suppositions are difficult to be accepted
because b usiness e n v iro n m e n t alw ays has
changes, b u t it is not alw ays stable ideally.
- Thus, in reality some techniques are
used to define th e cost for th e M arketing
Program m e of en terprises.
The te ch niq ues are as follows:
3.1. The P re v io u sly S im ila r M ethod
The
method
planned
activity
planned

n a tu re of th e previously similar
is the m a rk e tin g bu dget in the
period, based on th e cost for this
in th e previous year. If in the
y e ar th e re a r e n ’t any big changes

in business operations, the budget level
will be considered as m uch as the fact of
th e previous year. M an a g e rs can adjust
th e budget level in th e p lan ned year to
special situations. For example, in the
planned year, an e n te rp rise developed an
additional new product. If th e m arketing

budget last y e ar is 600 million VND, the

VNU, Journal o f Science, Economic S-Law', N,)IE, 2004

—

-----------------

67

m a rk e tin g b u d g e t th is y e a r is als( 60
million VND. W hen th e enteirLrjQ, >
1
to intro du ce a new product i n thí _ 1
a(! n n rk e t
in th e p la n n e d y e a r a n d estirmatfcc fiu
~
the
m a rk e tin g cost tor th is product c 20
million VND, th e m a r k e tin g bacaof
r
® H th e
p la n n ed y e a r will be 800 million V\J EYROn
million VND + 200 million 7Ịjj) _
million VND).
T he a d v a n ta g e of th is method 1-,
1
^ sinpie
a n d easy to be applied. T he planned f
of th e b u d g e t is reliable W a j s

b u d g et level is b ased on the
J
experience of th e previous y e a r
This
m eth o d
has
disacv-^ 4.
v*nt;ges.
B u dgeting based on th e thoroigjj je ,
J
into th e re la tio n s h ip betw een rv>o4.
cost and
profit can lead to th e ineffeitVfcne
f
in v e stm e n t c a p ita l in m a r k e t nr o th
o th e r h a n d , th e b u sin ess enviDrvnent th
d e m an d of c u sto m ers and fOnj.etii
changes, if th e e n te rp ris e still a>p ^es k
m ethod, it can m iss valuable 0)P)rUnv
b ro u g h t ab o u t by th e se changes Dĩ ịị
not realize
modified.

to

ineffectivemsi

to b

D ue to th e se disadvartare? th

previously sim ilar method is Oil iuit'bl
w hen th e e n te r p ris e operates iị x
t
stable condition a n d the eU(rpriS(
satisfied w ith th e gained levelso t\rnc
a n d profit w ith o u t w antin g to rroDve h
b u sin ess goals.
3.2. The P ercentage-of- S a e dithoi
T his m eth o d is th e improvcm n of h
previously s im ila r method. It s )£sed
th e
ra tio
relatio n sh ip b e w e \ h
m a rk e tin g cost and turno'e] 0f
e n te rp ris e in th e past. This fc h» m, t
p o p u la r m ethod.

)


Vu Phuong T h ao

68

According to th is method, to d eterm ine
the budget for m a rk e tin g in th e plann ed
period, m a n ag e rs m u s t have predictive
figures on th e tu rn o v e r in the planned
year an d the percentage of th e m ark etin g
cost in com parison w ith th e tu rn o v ers of

the previous years.
This m ethod h a s th e m ain ad v an tag es
as follows:
- It is simple a n d easy to be applied.
- It concerns a b o u t th e changes in
business e n v iro n m e n t as well as turn o ver
levels. If the tu rn o v e r in th e planned y ear
is higher th a n th e re p o rte d one in th e
im plem entation
year,
the
m a rk e tin g
budget in th e p la n n ed y ear will grow
com pared w ith th a t in th e im plem en tatio n
year and vice versa.
- It allows e n te rp ris e s to control the
cost and e n su re s t h a t th is cost will be
compensated.
The d isad v a n ta g es of th is method are
th a t it is u n sy ste m a tic an d it doesn’t
reflect the cause a n d effect relationship
betw een m a rk e tin g a n d tu rnover. Beside,
this m ethod m akes u s confuse th a t th e
tu rn o v e r affect th e m a rk e tin g cost while,
in fact, the m a rk e tin g cost h a s decisive
influence on the turnover*.
This m ethod should be applied w hen
the tu rn o v e r of a n e n te rp ris e doesn’t
depend too m uch on th e level of m ark etin g
effort.

3.3. The V iable M eth o d
U nlike th e two m ethods above, the
method of m axim al possibility does not
depend on experience a n d the relationship

betw een tu rn o v e r a n d m a rk e tin g cost in
th e past, b u t it relies on the c u rre n t
finance of a n e n te rp ris e .
This m eth od is b a se d on th e viewpoint
th a t m a rk e tin g cost is no t the cost to
create th e f u tu r e tu rno v er, but is an
in v e stm en t in th e tu rn o v e r a n d prestige of
a product b ra n d or the prestige of an
en terp rise in th e fu tu re. T hu s, in fact, a t a
certain time, th e e n te rp ris e can reduce or
reject th is cost to overcome financial
difficulties in a sh o rt-term . When the
a d v an ta g e s of th e e n te rp ris e become b e tte r
and thu s, th e fin ancial resources of the
en terp rise gets b e tte r, it will spend on
m arketing.
According to th is method, the budget
for m a rk e tin g d e p e n d s on th e e n te rp ris e ’s
financial reso u rces a fte r e n su rin g some
certain profits.
W hen
applying this
method, th e e n te r p ris e can en sure the
m inim al level of profit to exist and
develop. On th e o th e r h a n d , a t a certain

level, the m a rk e tin g cost really creates the
fu tu re ’s value.
This can allow an
e n terp rise o p e ra tin g in a quite stable
e n v iro n m e n t to decrease th e m arketing
cost in a s h o rt te r m w ith o u t dam aging its
position in th e m a rk e t. It is necessary to
know th a t th e in v e s tm e n t in m ark etin g
before w as e n o u g h to c re a te a re s u lt of
tu rn o v e r as expected. T h is is the m ain
ad v a n ta g e of th is method.
However, th is m ethod
d isad v a n ta g es a s follows:
-

has

some

T he a p plicatio n of th is method does

not re q u ire th e profound knowledge of the
m a rk e tin g influence on turnover and
profit. T he b u d g e t is ind ependently built
from w h a t th e m a rk e tin g can create, so it

VNU, Journal o f Science, Economic S-Law, N J E , 2004


Some m ethodical pro b lem s on allocating budget for.

may re s u lt in a s itu a tio n in which the
en terp rise will spend m ore th a n needed
level or does not spen d enough to take
adv antag e of th e a ttra c tiv e opportunities
which m ay em erg e in th e m a rk e t in the
planned period.
- M a rk e tin g cost c h ang es, depending
on fiscal years. If in a n y financial years,
th ere is much, m uch is spent. If in an y
fiscal year, th e re is little, little is spent. Or
if in an y financial years, th e re are a lot of
difficulties, n o th in g is spent. Therefore,
the long te rm m a rk e tin g stra te g ie s of the
en terp rise are h a rd to g a in the re su lts as
expected.
3.4.
The M e th o d o f P l a n n in g B u d get
B a se d on C o m p e tito r s 9 M a r k e tin g Cost
Level
This m ethod is b ased on the view th a t
considers m a rk e tin g a s a competitive
weapon w hich can h e lp an en terprise
improve its com petition position in the
m arket. According to th is method, the
en terp rise will sp end m ore th a n the cost
level of th e co m petitors if it w a n ts to
overwhelm th e com petitors. The enterp rise
can spend on its m a rk e tin g less th a n the
cost levels of th e co m petito rs if it believes

th a t it will use th e cost m ore effectively.
The p rim a ry stro n g point of this
method is th a t it is sim ple to calculate and
possible to set b u sin ess m a n a g e rs ’ mind a t
rest.
This m e th o d h a s som e draw backs as
follows:
- The im p le m e n ta tio n of th is method
requires e n te rp ris e s to have in h a n d
sufficient, accurate, and timely information

VNƯ, Journal o f Science, E conom ic S-L uw, N„l E, 2004

69

about the com petitors and th e ir m arketing
operations. It is to im p le m e n t this or it is
possible to im p le m e n t th is with a high cost
to collect information.
- U sing th is m ethod can speed up
competition am ong th e en terp rises in th e
sam e good b ra n c h to th e extreme, which
m akes all th e m em bers in th e good branch
incur damage. In such a situation, any
en terp rises which are th e strongest will
win if they still continue staying in the
branch.
- This m ethod is based on the
a ssu m p tio n
th a t

th e
budgeting
of
com petitors is th e scientific and logical
basis. In fact, if th e com petitors’ budgets
a re not sp en t system atically and they do
not exam ine rightly th e conditions of
b usin ess environm ent, th e enterprises will
follow “this broken w heel tra c k .”
- It is difficult to gain certain
g u a ra n te e because th e m a rk e tin g targets,
m a rk e tin g resources, an d opportunities of
e n terp rises m ight not be sim ilar to
com petitors’. Therefore, it is impossible for
e n terp rises to spend on th e ir m ark eting
operations, which is b ased on com petitors’
experience.
3.5.
M eth o d

The O b jective a n d Task ba sed

According to this method, to determ ine
th e m ark etin g budget, m a n ag e rs need to
set up specific ta rg e ts of m arketing
o peration in th e p la n n ed period. After
defining th e targ ets, m a rk e tin g m anagers
n eed to plan an y work which is necessary
to im p lem ent in o rd e r to achieve the set-up
ta rg e ts a n d th e cost for im plem enting each

work. The m a rk e tin g b u dg et level will be


70

Vu Phuong T h a o

determ ined on the basis of cost to
im plem ent th e e n tire work. Moreover, a
m easure system will control the progress
ra te in carrying out th e se targets.
This
method
advantages:

has

th e

following

- It req uires m a rk e tin g m a n ag e rs to
p resent in detail e n te rp ris e ’s ta rg e ts of
m a rk eting operation. T hus, 'h e e n terp rises
will have clearer pictures of th e ta rg e ts
th a t need reaching a t as well as th e work
th a t needs doing. The clear and specifi
u n d e rs ta n d in g about th e work will be the
good directions for m a rk e tin g divisions to
im plem ent th e ir plans well and combine

actions with others.
- It requ ires settin g up a n information
system to m easu re th e progress ra te of
im plem enting th e ta rg e ts a n d plans
accurately and appropriately.
- It provides m a n a g e rs with useful
feedback to b e tte r th e budg etin g process
and set up the work ta rg e ts or plans.
- This is th e m ethod a ttra c tiv e to the
en terprises w here th e sh ort-term goals
play an im p o rta n t role or in case the
e n terp rises’ m a rk e tin g influences on the
goals of business operation s are separated
from th e effects of th e changes of o th er
business en v iro n m en t factors such a s the
economic situation, th e operations of
competitors, and the technological changes.
- W hen applying th is m ethod, the main
obstacle is th a t m a rk e tin g m a n ag e rs m st
u n d e rs ta n d clearly ab o u t ohe relationship
betw een
ta rg e ts
and
correlative
commissions to im p le m e n t the targets. If a
fixed activity is unsuitable for implementii g
the set-up targets, it will not allow the

e n terp rise to gain the ta r g e ts as expected.
To u n d e rs ta n d this re la tio n sh ip clearly,

m a rk e tin g m a n a g e rs should carry out
serious, research effort. T h u s, th is method
should be applied in th e organizations
w ith financial resources.
It is possible to say t h a t except for the
last method, the m ethods m entioned above
have th e following disadvantages:
- The application of these m ethods
helps m an ag ers avoid th e ir responsibilities
for m e asu rin g the rela tio n sh ip s betw een
m ark etin g expense and the goals of
tu rn o v e r and profit im p lem entatio n. This
is th e ir a d v an ta g e a n d d isa d v a n ta g e at the
sam e time. These m eth od s don't give
suggestions to the m a rk e tin g m an ag ers
w hen they wish to im prove the goals of
tu rn o v e r
and
profit
im plem entation.
Moreover, these m ethods do not help the
m a rk e tin g
m a n a g e rs
u n d e rs ta n d
thoroughly and guide th e m in term s of
m a rk e tin g w hen o p e ra tin g in the changing
environm ents.
- M ark etin g bu d g e tin g originates f:om
the satisfaction with th e goals of previous
im plem entation and following th e past

precedents will not give tria ls to m arketing
divisions.
It does
not
req u ire the
m ark e tin g divisions to improve th e ir effort
to contribute to th e success of th eir
e n terp rises
th ro u g h
u n d erstan ding ,
research skills and cre ativ e and h azardous
analyses. Tn stead of b eing offensive and
foreseeing,
these
m ethods are only
defensive and responsive.
W hen using these m eth od s to budget
for the m arketing operations of enterprises,
m a rk e tin g m a n ag e rs should pay attention
to th e following points:

\ ' NU, Journal o f Si e n d '. Economic.\-lxjw . N, JE. 2004


Some methodical problem s on allocating budget for.

First, w hen we use any methods, we
m u st exam ine them . The combination of
methods will be th e basis of planning budget.
Second, b u d g e t is th e figure to quantify

the m a rk e tin g strateg ies. It is not absolute
and constant.
The changes of the
en v iro n m en t c an requ ire e n terp rises to
change the m a rk e tin g s tra te g ie s and the
changes of m a rk e tin g strategies, in tu rn ,
requ ire th e chan ges of b u dg et to en su re
the im p le m e n ta tio n s of th e targets.
Therefore, e n te rp ris e s im plem ent the
m ark etin g p la n s a n d th e b ud get plans,
m anag ers need to exam ine a n d evaluate
the budget level regularly so th a t it is
possible to a d ju s t the b u d g e t level to the
e n v iron m ent a n d the m a rk e tin g strategies.
Third, w h en we use any methods, we
m u st combine th e m to sup po rt and
s tre n g th e n the checking procedures.
Fourth,
th e
detailed
m ark etin g
budgets only m a tte r if they a re relev ant to
the general financial plan. Similarly, the
general m a rk e tin g b ud gets m a tte r when
they are sufficient to implement certain work.

4. B u d g etin g P r o c e d u r e s
To d e term in e th e general m ark eting
b udget of an e n terp rise, th e budget for
each division or each specific operation and

specific work, two methods are usually used:
+ The top-dow n m ethod
The n a tu r e of th is m ethod is th a t the
m arketing m a n a g e rs provide the decision
on the general common b u d g e t size for the
whole e n terp rise, every u n it of the
enterp rise a n d every product channel. The
m an ager of each u n it or each product
c hannel will d is trib u te the received budget
to the divisions or th e operations of their

VNU, Journal o f Science, Econom ic S-L a w , N„IE, 2004

71

own units. If th e m a n a g e rs of the divisions
find th a t such budget cann ot ensure the
achievem ent of th e goals, the senior
m a n ag e r will discuss w ith them to
reallocate th e budget. If the m an agers of
some divisions req uire the increase in the
budget for th e ir own divisions, the senior
m an agers can settle this problem by
raising the total general bu dg et to support
the divisions or reduce the budget of others
w hen it is impossible to increase the total
budget of the whole enterprise.
+ The bottom -up m ethod
The n a tu re of this m ethod is th a t the
m a n ag e rs of divisions them selves define

the operations which m u s t be im plem ented
in the plan ned period to gain the targ ets of
the m a rk e tin g stra te g ie s of th e enterprise.
Then they e stim a te th e cost of these
o p e ra tio n s , s u b m it th e m a s a b u d g e t plan
of the division to the senior m an ager in
charge of th e m a rk e tin g operations of the
enterprise. The senior m a n a g e r examines
these budget p lans a n d if they meet the
req uirem ents, th e y will be considered as
the general m a rk e tin g budget and is
su b m itted to th e director board of the
e n terp rise to incorporate it in the
e n te rp ris e ’s a n n u a l financial plan. If the
a n n u a l financial plan need to be adjusted,
the process will be reversed and the
m a n ag e rs of th e divisions will have to
ad ju st the e stim ate d plan s to the budget
restriction
of
th e ir
divisions.
The
m a n ag e rs of th e divisions balance and
a d ju st the real costs a n d the goal of
im p lem entin g th e inspected budget plan
w hen they are imbalanced.
Each en terp rise m u st depend on its
own real situ a tio n to choose appropriate
methods.

72

Vu Phuong T hao

REFERENCES
1.

Philip Kotler, Quản trị M arketing (Bản dịch tiếng Việt của Vũ Trọng Hùng), NXB Thông kê
Hà, Nội, 1994.

2.

Philip Kotler, Principles o f m arketing, Third edition, Pentice - Hall of India, New Delhi,
1998.

3.

Joseph P. guiltinan and others, M arketing management: Strategy and program s, Sixth
edition, MeGraw- Hill companies, Inc., 1996

4.

Davit w . Cravens, Strategic m arketing, Sixth Edition, MeGraw - Hill companies, 2000
TẠP CHÍ KHOA HỌC ĐHQGHN, KINH TẾ - LUẬT, SỎ' IE , 2004

MỘT SỐ VẤN ĐỂ PHƯƠNG PHÁP LUẬN HOẠCH ĐỊNH NGÂN SÁCH
CHO HOẠT
ĐỘNG

MARKETING CỦA DOANH NGHIỆP
•
•
•
TS Vũ Phương Thảo
Khoa K in h tê, Đại học Quốc g ia H à N ội
Hoạch định ng ân sách cho hoạt động M arkeitng trong tương lai là một trong những
quyết định qu an trọng tro ng q u ản lí m ark eting chiến lược. Vì mục đích đưa ra các phương
pháp hoạch định ng ân sách cho hoạt động m arketing, bài viết này được cấu trúc làm bôn
phần. P h ầ n th ứ n h ấ t tác giả nêu lên một sô' q uan điểm cho rằ n g các n h à q u ả n lí p hải nắm
được để dự toán khi giải quyết các vấn đề liên quan tới hoạch định ng ân sách cho h o ạ t động
m arketing. P h ầ n tiếp theo là hai cơ sở để hoach định n gân sách cho ho ạt động m arketing.
Trong p h ần thứ ba nêu lên n ă m phương pháp hoạch định n g ân sách cho h o ạ t động
m ark eting tổng th ể m à các n h à q u ản lí có th ể sử dụng. Các phương pháp đó là: (1) Phương
pháp giông n h ư lần trưốc; (2) Phương pháp ph ần tră m b án hàng; (3) phương p h áp theo khả
n àn g tôi đa; (4) Phương p háp xác định ngân sách dựa trê n mức chi tiêu cho h o ạ t động
m arketing của đôi th ủ cạn h tra n h ; (5) Phương pháp căn cứ vào mục tiêu và yêu cầu của
hoạt động m arketing. Vì mỗi phương p háp có ưu và nhược điếm cho nên n h à qu ản lí phải
chọn phương pháp p h ù hợp với doanh nghiệp của mình. P h ầ n cuôi đề cập đến th ủ tục hoạch
định ngân sách cho h o ạ t động m arketing.

VNU, Journal o f Science, Econom ics-Law, N 0IE, 2004