How should WNA determine its promotion budget?

Wilderness Newfoundland Adventures (WNA), a family owned adventure tourism business in Newfoundland, is planning its marketing and promotion strategy for the 1999 season. In the past year it has spent nearly 29% of its income on promotions, with some positive results. WNA has many promotion options available. However, WNA is a small business and it must spend its promotion dollars wisely.

While the immediate question facing WNA is what to do for the 1999 promotion campaign, the more fundamental question concerns the entire marketing focus or strategy to be implemented now and maintained over the long term. Students need to do a careful analysis of past promotion spending and the value received from each medium to appreciate the issues in the case and the dilemma facing WNA