Strategies for Determining the Right Marketing Budget
Determining a marketing budget is an important part in making marketing strategies that are realistic and can be controlled. Without a budget plan, you will not realize that you have spent too much money on marketing. Here are some tips that can help you determine how much your marketing budget is and also adjust it strategically.
Manage financial information
The first step you can take is to manage your current financial situation. When you make a budget plan, of course you are not making a realistic marketing budget. Understanding your financial situation starts with understanding your income information. As a business owner you must know how and how much budget your business produces each month.
Especially for new companies or companies that have only been established for 1 to 5 years, you can use 12 to 20 percent of your total gross income or projected revenue for your marketing budget. But for companies that are less than one year old, you should increase your income first compared to spending on marketing budgets. Whereas for companies that have long existed or have been in the business world for more than five years and have a market share, you should allocate your funds around 6 and 12 percent of your business’s gross income or projected revenue.
Where and how is your marketing budget used?
Once you have annual income, the next challenge is where to allocate these funds among the many marketing channels available for your business. These options include conventional marketing options such as print advertisements, radio / TV, yellow pages, direct email, and trade show booths. Even though you already have an annual income, you must not forget that some of the most important marketing tools today are also the most budget-efficient tools, such as your business website and social networking.
The key to allocating funds among all marketing provider tools is to think about who you want to reach and what media might be used by them. Both of these can help you to encourage and inform your marketing. In addition, you should focus more of your time and budget to improve the content that is on your site, such as providing content that is useful, personal, interesting, and not just plain advertising.
Especially for social networking, think about which social media is most suitable for your business. If you like making small talk with lots of people, maybe Twitter is the right choice for you. If you prefer to have deep conversations with one or two people, blogging might be the right choice. Whatever type of social media you use, always ensure the quality of what you write and the information you provide.
Follow the performance of your business marketing efforts
Regardless of how you decide to allocate your funds, the important step you must take is to follow the performance of your marketing efforts carefully. You can include several questions in the inquiry form on your site. If you want to get more customers through useful content on your website, or want more customers to read your blog and also follow your Twitter, keep spending your time and money on these efforts. But if it turns out marketing through print advertisements, radio or other, you can also seek your funds for it. You don’t always have to set a marketing budget for one year, but you can adjust it to your business conditions.
Those are some easy steps to determine the right marketing budget. Planning alone is not enough to make your marketing successful, do it immediately and remain committed to living it. This marketing budget plan can help you make decisions in the future and save on your company’s expenses.