What to consider when setting a budget for marketing

Budgets.They're just one of those things that you can't live without but also don't necessarily want to live with.But you also know that living with a budget, especially if you're a business owner, can be the difference between a successful, well run business and a business that struggles to reach its goals and sell its products.But planning a budget can be more difficult than it seems, so to help you through this process, here are a few ideas of what to consider when you're setting up a marketing budget.

First of all, with a budget you need to decide what kind of money you're working with.How much do you have to dedicate towards your marketing expenses?Well, this question is difficult to answer because it varies by industry, by the size of your business and by the target group your product or service focuses.Several business associations agree that the proper marketing budget is somewhere between 2% and 10% of total sales, but this is a number that, again, may vary depending on your business.But the best and easiest way to find the correct answer to this question is to create a budget for your entire business.However, as that topic is beyond the scope of this article we shall leave you to complete a business budget on your own.But once you're able to determine how much money you may have to work with on your marketing budget, you can begin to create a budget just for your marketing expenses.

There are two main things that you should consider when you're creating a marketing budget.The first is the development of your brand and the methods used to promote your product.The second is the ongoing expense of promoting and advertising your product.You should also set some objectives or goals for each area of your company's marketing strategies.Then you should attempt to estimate what each area could cost.

Sometimes circumstances beyond your control will require you to increase or reduce your marketing budget.For example, during your company's initial building phase, you will probably have a much higher marketing budget.Since you need to get your name out there and people aware of your product, you will probably need increased funds for a period of time.This will allow you to contract as many different methods of advertising as you need to get your business out there.However, once you've reached a more stable situation (you're experiencing steady sales; people recognize your company name; people desire your product or service) you can decrease the size of your budget.

Now, determining how much of your budget should be allotted to each area of marketing depends a great deal on what types of marketing strategies you want to use.For example, within the advertising section of marketing, you should consider the type of advertising you want.Do you prefer a one-time advertising event or an ongoing campaign?Would your company do better with local or national advertising?Do you prefer the radio, TV, internet or print media for your advertising?You must be able to answer these questions (generally, at least) before you can begin to create a budget.The reason for this is that each of these areas cost different amounts of money.Internet advertising is virtually free, while TV commercials can be very expensive.Ongoing advertisements may very in price and could be the best deal for your dollar.

Preparing to set up a budget takes time and effort.But in the end, it's well worth it.Just think- once you've got your budget set up and ready to go, you can begin marketing your product and then wait and see the money come pouring in!