The Importance of Budget in Marketing and How Much You Should Spend
December 21, 2018
Working on your brand’s identity is the number one plan you have in mind. . . You talk about strategies, putting everything on a schedule and plan on carrying it out on time. But, there’s a just one problem - you haven’t allocated budget to implement all the things you have planned for weeks or maybe even months. All the talk, the planning and everything else that goes with it are going inside the bin in just a split second and it’s all because you don’t have the budget.
A marketing budget is perhaps the most important element of the business that without it, your business wouldn’t grow. This can be attributed to a new car. You got a new car but don’t have the money to buy gas to make the car roam around and take it wherever you want to go.
Today, let’s take a step further to understanding the role of budget in marketing and how much do you really need to spend on it.
Determine the goals of the business.
Enumerate the objectives of the business. List what you wish to achieve like getting more sales, build brand awareness or stay on top of the competition. Once you have listed what you would like to do to grow your business, set aside some budget to be able to implement your plans into action.
Know which medium you plan on using.
Your marketing budget will depend on which medium you want to spend it to. They can be through advertising in radio or tv commercials, print ads, trade shows, brochure exchanges or newspaper advertising. It can also be through social media ads, digital marketing (seo, sem), email marketing and so on.
Finally, allocate the marketing budget.
The costs for doing marketing and advertising is referred to as the marketing budget. As a general rule, it is recommended that you spent about 2 to 5% of your revenue towards marketing. You could set it higher than the ideal percentage, but they will all boil down on the goals of the business and the medium you wish to use to accomplish the growth of the business.