Tips for Creating Your Company's Marketing Budget
Many times in the course of business, budgeting for your advertising needs is pushed aside in favor of pay roll expenses, office supplies, building maintenance, etc. The marketing budget is just as important as these other expenses, however, and the reason marketing efforts often suffer is because they are not properly planned for and budgeted.
Inconsistency in marketing budgeting and planning results in inconsistent efforts. This results in spending too much on the less important projects and too little on vital marketing items like market research, television commercial production, and product booklet printing. The solution is simple: a well-planned annual marketing budget spent strategically over the course of the year. Here are some tips for creating your company's marketing budget.
Percentage of Budget
Experts recommend spending eight to ten percent of your business's annual budget on marketing. You will also need to take into consideration your company's current market exposure and brand recognition which may require those percentages be raised.
New Company
A new company will need a higher percentage for their annual marketing budget to accommodate start up costs and additional marketing endeavors to build their brand recognition and market exposure. Items such as website design, corporate identity packages including logo, business stationary, and business cards, and printed materials such as brochures and catalog or booklet printing will need to be included in the expected first-year cost.
Established Company
An established company with a strong client base will focus their marketing budget on keeping the customers they have and gaining new customers. This can be done with a combination of television or radio commercials and printed materials such as direct mail catalog or booklet printing.
Updating Company Aspects
A company going through a transitional period, perhaps updating their products, services, and image to meet the current market, will need to add a little extra to their annual marketing budget. Do not let your progress on behalf of good customer service go unnoticed! In addition to a roll-out campaign, it is important to update your printed materials such as business cards, brochures, and catalog or booklet printing to show your fresh new look and improvements on behalf of customer satisfaction.
Common Costs to Consider
Where ever your business falls in this spectrum, you will need to consider these costs when planning your annual marketing budget:
• Marketing consultant or market research
• Graphic design services
• Media purchasing
• Printing services
• Website hosting
• Website programming
• Copywriting
• Video production
• Professional photography
• Model fees
Small businesses who cannot yet justify an in-house marketing department can make use of a marketing agency or independent marketing consultant about where they should spend their marketing budgets. Especially if you are short-handed, this may be way to go for strong marketing at a lower cost.
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What a helpful article about Creating Your Company's Marketing Budget, thanks for sharing. It truly deserves a 5* rating and recommendation!
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