Making the best use of your promotional budget
The size of your promotional budget decides how much you have to spend on promoting your products.
Determining a promotional budget can be a very difficult thing to do. A promotional budget could be way under what one forecasted or way over. There is not an exact formula to figure out a promotional budget, but there are a few steps you can take to decide how much to put aside for your promotional budget. After figuring out a promotional budget, it then is determined what would be the best ways to use the promotional budget.
Step 1: A promotional budget should include expenses for promotional tricks or things that will get people attention such as flyers, brochures, and newspaper ads.
Step 2: A promotional budget should be laid out at the beginning of the year. You can estimate how much money will be needed for the promotional budget by going off of last years numbers.
Step 3: Plan what promotions will be offered this year and take that into account when coming up with a number for this year's promotional budget. If it is a new business forecast how much the company will make and take anywhere from 1% to 10% of the profits and put it towards the promotional budget.
Once it has been determined how much money should be set aside for a promotional budget, the next thing to do is make the best use of the promotional budget. To make the best use of a promotional budget a couple of things should be taken into consideration.
1st What is the best market to target?
2nd Determine what kind of response you want to get from an audience. An example of this would be to mail out a coupon for a percentage off the first time they come in. It will give them a sense of savings so they might respond by trying your product over some one else's because of the price. Coupons would also be something to take into consideration when making up you promotional budget.
If your promotional budget is quite tight the best way to use your promotional budget is to write articles. Writing articles will bring a lot of high traffic with out the high costs that other promotional gimmicks might bring with it. You want articles to include useful information about a product. Making a website for a business and letting people leave feed back on products is also a very inexpensive way to promote products without having to break the promotional budget.
After each promotional gimmick compare the cost of the activity against the profit made off of the promotion. This will help determine if the activity is worth using again in another promotion. If the activity proves to be less than satisfactory take it out or improve it and then compare the numbers again after the next promotion. This will help decided what is the most beneficial way to spend money from the promotional budget.Whether you have a large promotional budget or a very tight promotional budget, making the best use of it is always insuring that you are making more money on the product itself, rather than spending the money on promoting the product.
Categories: Marketing Plan,
Marketing and Sales
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