Skip to main content
Go to the home page of the European Commission (opens in new window)
English English
CORDIS - EU research results
CORDIS

Marketing Expenditure Budgeting: from the Upper Echelon to the Lower Echelon

Objective

With increased competition intensity in almost all industries, nowadays no one could deny the importance of marketing function to a firm in driving sales. However, overspending in marketing has been an immanent problem that prevails in firms across various industries. Overspending in marketing not only erodes firms’ profit, but is also harmful to social welfare. Unlike price reduction related promotion (bundling, coupon, etc.) that benefits consumer eventually, overspending in marketing mainly composed of activities such as advertising and marketing campaigns is a huge waste to the society as a whole. From the regulator’s perspective, it is not feasible for regulators to interfere with firms’ decision on marketing expenditure. The goal of this research is to find a way to help firms to set a marketing expenditure that aligns firms’ behaviour with regulators’ expectation while taking into consideration of firms’ inherent incentive to maximize profit. A large body of literature has devoted to address the question what the optimal marketing expenditure a firm should set to reach maximal profit. However, the normative criteria to set an optimal marketing expenditure by the previous papers 1) too sophisticated to adopt or implement in reality 2) is derived based on a set of very constrained assumptions, which make the findings practically irrelevant. In our study, instead of coming up with certain techno-economic criteria for firms to follow, we zoom into a firm and examine the process how a marketing budget is decided. By studying the ‘task environment’ that a marketing budget is produced, we are able to 1) obtain insights on factors that lead to overspending in marketing 2) give feasible and actionable advices to firms that suffer from inefficient marketing expenditures.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

You need to log in or register to use this function

Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MSCA-IF - Marie Skłodowska-Curie Individual Fellowships (IF)

See all projects funded under this funding scheme

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) H2020-MSCA-IF-2014

See all projects funded under this call

Coordinator

ERASMUS UNIVERSITEIT ROTTERDAM
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 177 598,80
Address
BURGEMEESTER OUDLAAN 50
3062 PA Rotterdam
Netherlands

See on map

Activity type
Higher or Secondary Education Establishments
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 177 598,80
My booklet 0 0