Being in marketing, we often see businesses hit hard financial times, and they consequently pull money from their marketing budgets to stay afloat. However, as marketing can have such a significant impact on your business sales, this is precisely the time when you shouldn’t be making any cuts to the marketing budget at all. This is when you really need to have a marketing budget the most.
Marketing is so much more than simple advertisements, sales and promotions. Of course, those items fall under the marketing umbrella, but the concept in its entirety is quite vast. In order to remain competitive and maximise profits, your budget for marketing needs to include the costs of planning, pricing your products or services, as well as the placement and distribution, and then the obvious promotion.
Some activities that can help you evaluate and produce a marketing budget include; market research, product development, business finance projections, evaluating other business processes (such as distribution methods and current marketing and advertising practices and success rates).
Marketing budgets vary from business to business, and from industry to industry. There is no single blanket rule as to how much you need to put aside for it. At Kis Marketing, we recommend allocating a specific percentage of your revenue. We believe that trying to run a business with no marketing plan (and no budget) is just as futile as trying to drive a car without petrol.
Here’s a few more tips to get started:
- Define your target market. Who are they? How do you currently communicate with them? How would they prefer you to communicate with them? Depending on who your target audience is, different platforms will be your best investment. Your target market will help you find a clear picture of which channels you need to use and strategies that you should implement.
- Draft a promotional plan. Which platforms/channels will you be using, and how will you be using them? Find out the costs associated with targeting your market on those channels.
- Formulate a budget. This is best accomplished by setting out a spreadsheet. In the first column, list your marketing channel/tool, in the second column name and describe the service provider, in the four subsequent columns label one for each quarter and break your marketing costs down by quarter.
- Regularly review. At the end of each period, sit down and review your figures. Assess what’s working and what isn’t. If you’re spending money on certain channels without seeing ROI, make changes. For the methods that are working well to produce more business, replicate and repeat them in the next budget.
If you aren’t sure where to start, that’s ok. Marketing is an ever-changing industry and with digital marketing becoming so essential, it can be hard to navigate alone. Marketing is critical to generating sales for your business and you won’t succeed long-term without it. If you’d like to have a chat with the marketing experts, feel free to contact the friendly team at Kis Marketing on 4934 4556. We would be happy to help you build an effective budget that will allow you to get the maximum return for your marketing dollars.