The document discusses various methods for budgeting advertising expenditures, including the percentage-of-sales method, objective and task method, competitive parity method, and all-you-can-afford method. It also outlines the process for developing an advertising strategy, from defining objectives and target audiences to creating messages, selecting media, executing campaigns, and evaluating effectiveness. Finally, it provides an exercise for allocating advertising budgets for brands in different stages - a mature shampoo brand, declining mobile brand, fast-growing watch brand, and new hotel launch.