Determining your marketing budget
While it would be terrific for businesses to have an unlimited budget when it comes to marketing, it is definitely not a reality. But businesses do need to spend money to make money. Marketing is the way to do this so it is important for a business to determine their marketing budget. There are several different ways that a business owner can figure out their marketing budget and this article discusses many of them.
Just a little bit more
One way that a business owner or marketing team can figure out their marketing budget is by finding out how much their competition spends on marketing. After they find out how much the competition spends then they can spend just a little bit more. While this strategy sounds simple enough, it is actually kind of difficult. The hardest part is finding out exactly how much the competition is spending on marketing.
If a business is able to find out how much their competition is spending on their marketing then this can be a great method for determining a marketing budget. The business will know how much they need to spend minimally to stay up with the competition. They will also be able to spend just a little bit more on their marketing to try to get ahead of the competition.
The approach of a business spending any part of the budget that they have left after they have used the part of their budget for the other business essentials is aggressive but risky. Most small businesses should not go about determining their marketing budget this way. But some businesses, especially those who have a decent amount of backup, can get away with this option. This approach can help them to grow their business quite quickly in some cases.
Another way for a business owner or marketing team to determine their marketing budget is for them to take a certain percentage of the business' revenues and putting it toward their marketing. Usually business owner use five to 10 percent if they are a bigger business. If the business is on the smaller side they will use up to 20 percent, and the even larger companies can get away with using two to five percent of their revenues for marketing.
If a business owner has a certain number of new customers that they would like to get through their marketing campaign then this can be a way for them to determine their marketing budget. The business owner or marketing team should first determine how much it costs them to get a new customer. Then they will be able to figure out how much it will cost total by multiplying the number of new customers they hope to get by the costs it takes to get one new customer. This can be a great way for a business owner to determine their marketing budget as long as they have the correct data from the very beginning of the process.
Don't worry about it
There is another option to help business owner determine their marketing budget and the internet is making it easier and easier. The option is to not spend anything. While it is actually not possible to spend absolutely nothing, many businesses can spend very little and it will seem like nothing compared to other business' marketing budgets. If a business owner or marketing team decides to spend hardly anything on their marketing they need to be prepared to spend a lot of time on their marketing to take the place of the money.