Small and large businesses which plan to compete with their respected markets must develop a marketing budget. Although large companies have arguably millions to spend toward marketing campaigns; small businesses can also compete through their own niche marketplaces that are comparable to even the largest of budgets.
But first, a business must create a budgeting plan. Why? To grow as a business in a highly competitive society, businesses must continuously market their business to those that are willing to buy. Without marketing (and a budget) a business will simply fall apart or die a slow death from competitors encroaching on market share.
In this article, you will learn how a marketing budget is determined and planned for small and large businesses.
♦ Step 1: Plan for growth
Most marketing budgets are reserved as the economy has its ups and downs. Unfortunately, many large and small businesses do not place enough emphasis on marketing even during great times. The lack of marketing leads to stale business over years of sparse funds.
It’s often cited as a rule of thumb to dedicate 20% of the revenue to a business toward the marketing. Twenty percent is a manageable amount which allows for enough room to create a great marketing campaign but not enough to break the bank.
♦ Step 2: Determine your platforms
A very important part of developing a marketing budget is where the funds will be spent upon. Many advertising platforms are much more expensive but can deliver greater, targeted results. Likewise, advertising platforms can also offer cheap alternatives but require more back-end work to keep the marketing campaign managed.
Part of your marketing budget should include any dues or fees associated with marketing within certain advertising platforms. Some platforms may require advertising managers which require pay; include every aspect of the advertising platform so your budget does not go into the red.
♦ Step 3: Set priorities
After the budget and platforms have been chosen for your marketing campaign you must divide each into which you believe will hold the greatest return. Without making any brash decisions, always run small tests with each campaign to accurately determine if the chosen campaign will require a certain percentage of a budget.
After the marketing campaigns have been determined and factored into the budget, slowly roll out the campaigns to create an impact.
Through enough rigorous testing and maintenance your new marketing campaign will help drive new customers to your business while avoiding any costly mistakes from going over budget.