While organic growth is a big indicator of how good the quality of your content is, putting in a little money to give it a boost never hurts. You need to have a marketing budget to ensure you don’t blow up all the money wastefully. Don’t know how to plan your marketing budget? Read on.
Understanding Marketing Budgets
Every company is uniquely different, therefore, their marketing needs are also going to be different. Before coming up with a marketing strategy and budget, consider these 3 key pointers about your company:
- How famous is your business? If it’s not that famous, you may need to spend more.
- How much can you afford to spend? It is important to ascertain how much you may be able to spend on what activities. You don’t want to empty your account without determining the return on investment on the activity.
- How much are your competitors spending? Copycat marketing is legit. If you don’t exactly know where to start, check out how the others are doing it.
Where to Market?
There are several channels of marketing that you can push out your product and content on to help people discover you. Here is a list of some mainstream media where you may think of starting with:
- Internet – Sponsored content network ads.
- Social media – Facebook, Google, YouTube.
Pick a combination of these to start marketing your business. Make sure to understand which channel fits your brand perfectly.
A few ways in which you can make a marketing budget for your business:
1) Start with a marketing strategy
Your marketing strategy needs to align with company’s goal. Create a marketing strategy that your sales team and marketing team are onboard with. This will help you make a marketing budget that is consistent with everyone’s business goals.
A marketing strategy is a complete plan of execution. Need help with getting started? Watch this video on how to get started with your first marketing strategy.
2) Know the operational costs
Take into account your operational costs before taking any marketing decisions. Make a marketing budget after you understand your operational costs.
3) Consider your growth stage
Setting your marketing budget depends upon whether your company is in the growth mode or planning mode.
Growth mode: If you are in the growth mode, you’ll need to make quick win marketing strategies that help you push up your top-line revenue at a faster rate. You’ll need to make bigger investments for this to happen.
Planning mode: If you are in the planning mode where a steady growth rather than hikes in revenue is the aim, you’ll need a long-term business strategy.
4) Understand current and future trends
When you want to make a marketing budget, it is very important to adapt and plan strategies that are in line with the pace of the industry.
You will need to study and understand the current trends to forecast the future ones to make a solid marketing budget. A good marketing budget should include both traditional marketing strategies along with emerging social media tricks.
5) Set your marketing budget
Once you’ve done all of the above, you will need to set a tentative marketing budget that supports your strategy. You’ll need to choose from three options:
Lean Plan: 1-2% of your gross sales invested in marketing. This is for companies who want to maintain their current market position by giving them simple tools and strategies to retain their current customers. This is for companies that don’t have any ambitious growth goals.
Target Plan: 3-4% of your gross sales invested in marketing. This is for companies who want to attract new prospects and retain current customers by giving them advanced tools and strategies.
The goal is to increase their market share and have moderate growth goals.
Stretch plan: 5% of your growth sales invested in marketing. This is ideal for companies that want to increase their market share by using more resources that are focused on driving leads, conversion, and sales.
Companies that have such ambitious growth goals will use complex strategies and cutting-edge tools.
Marketing budget should be viewed as an investment that will give you good returns, Marketing product or service has become an essential strategy to drive sales.
For making a marketing budget you need tools and analytics that will help you make business decisions. At Instamojo, you will be able to conduct marketing experiments that will help you in your marketing decisions and understand your business better.
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