Do you know how to calculate the right marketing budget for your business? The simplest rule of thumb is that your budget should represent between six and eight percent of your revenue. But every business owner knows that there’s much more to consider when determining your marketing budget. A business with a huge budget but no plan will not see great success in marketing their product or service. A successful business requires a successful marketing plan. Click To Tweet
Create a Plan – And Stick to It
A comprehensive marketing strategy is the best way to ensure that your marketing dollars are well spent. A well-defined marketing plan should include everything from market research and your position in that market, to what tactics you’ll use to stand out from your competitors.
1) Organize Financial Data
All your financial data should be organized and easy to understand. This will give you a better idea of how much is going out and what’s coming in. Also include estimates of how much an outside marketing firm will cost annually, or if you’re hiring an inside team, the costs associated with that.
2) Have Clear Goals
Having clear and actionable business goals is vital to your marketing plan. You won’t end up where you want to be if you’re not sure how to get there. Set clear goals with trackable milestones so you’ll know how close or far you are to reaching them.
3) Understand Marketing Trends
A good understanding of current marketing trends will help you to navigate the budgeting process. When setting a budget, it’s important to adopt and apply different technologies to keep up with the pace of industry changes
4) Develop a Clear Brand
Your brand should be comprised of your company culture and image, as well as its core competencies and characteristics. The impressions you make on current and future customers are the basic framework of your brand.
5) Target The Right Audience
Who is interested in your product or service? Where are they from? How old are they? How much money do they make? Answering these questions will give you an accurate customer profile to use when targeting your marketing campaigns.
What Should Your Marketing Budget Be?
When determining your ideal marketing budget, it’s important to prioritize it. Never base it simply on what’s left over after covering all other expenses. Marketing is crucial to ensuring the growth of your business. Your current customers should always be your top priority, but with the right marketing agency on your side, you can grow that base significantly.
Contact Us to learn more about developing a smart marketing campaign that will fit your budget.