Your marketing budget will determine several aspects of your marketing plan what to spend on, when to spend it, and how to spend it and, in consequence, its success. You must then be careful and cautious when setting your marketing budget lest your entire marketing plan is laid to waste especially as money is essential to move it forward.
During the planning stage for the marketing budget, three directions will be available to maintain the status quo, to ramp up spending to compete in the increasingly tight market, and to cut back for cost-cutting purposes. But determining an exact figure for the marketing plan is just one-half of the battle you must also determine where each dollar will be best spent. Read on and find out more tips on effective budgeting for your marketing plans.
Coming Up with the Exact Figure
Experts suggest starting with a conservative figure, say, 1 to 10 percent of sales when planning on a marketing budget. Several factors must be considered including but not limited to:
- How well does your consumers know about your company and its brand, products and services? If you are new to the market, then a higher budget is called for especially when you want to invest in advertising materials retractable banners like and wholesale banner stands.
- How much are your competitors spending? You want to give them a good run for their marketing money but not to the point that your entire company budget will run aground. Just have a sense of your competitors marketing budget.
- How much can you afford for your marketing materials, manpower and other aspects? Consider the free advertising venues at your disposal Facebook business pages, WordPress blogs, and Twitter accounts, among others, as well as word-of-mouth advertising.
Just consider each of the individual components of your marketing plan, make realistic estimates of their cost, and incorporate these parts into your marketing plan. For example, if you are planning to participate in more trade shows and industry conventions this year, then you may spend more on retractable banners like and wholesale banner stands, both of which can be used in a wide variety of venues.
Deciding Where to Spend
When you have decided on the annual marketing budget, say, 10% of your estimated sales, your next step is allocating the money for each of the marketing channels. Keep in mind that you have two general options, namely:
- Traditional channels like print (e.g., newspapers), broadcast (e.g., radio, television), direct mail, the Yellow Pages, and events (e.g., trade shows, industry conventions, and company events)
- Digital channels particularly the Internet (e.g., social media and networking sites), most of which are free except for paid ads, SEO plans, and paid memberships
Tip: When allocating, consider who you want to reach and what their preferred media are. Keep in mind that the more focused your marketing efforts, the more likely your marketing plan will be successful think cost-efficient and results-effective.
If necessary, hire professionals to write blog posts, design your websites, and plan your SEO campaign, among others. Add their professional fees to your budget, too.
Tracking the Results
Every plan should be monitored, evaluated and adjusted at regular intervals. You will have insights into the efficacy of your previous years marketing plan by doing so and, in the process, add valuable inputs into your present years marketing budget.
The bottom line: Track the results of your marketing budget how much was actually spent, what the results were, and why these results were achieved, for example. Your marketing plan should already have the measurement tools spelled out from the first get go!
You will find that by tracking the results and tweaking the plan, you will have greater control over the return on investment for every dollar spent on your marketing budget.
So, how much should you spend? Spend only as necessary to achieve your goals in marketing and sales.