Marketing Budget: Tips for Setting It Correctly
Posted: Tue Jan 07, 2025 5:30 am
To establish a marketing budget today you must include a portion for digital marketing . There are many tools that can help you facilitate your research processes by doing everything yourself as long as you have internet. These tools exist for all types of processes, some of which are the creation of online surveys , mass email sending, and even for managing your social networks.
These years of crisis situations are often times of reflection and planning. Adjustments to the marketing budget for the following year follow the same process: looking back at the achievements of the current year and defining goals and resources for the following year.
"What will be the marketing budget for next year?"
That's the big question for which there is no easy answer.
Defining and detailing a marketing budget is only half the battle, the hardest part is getting senior management approval, so be prepared and back yourself up with a well-planned strategy so that all your work and sleepless hours don't throw you off track. I know what that's like, and what you go through.
When you are going to establish the marketing budget, remember something very important: the well-known phrase “ Look at the whole picture” . What this phrase means is that you should not just focus on your surroundings, cross borders and evaluate various options, because many times you find very efficient strategies and tactics that you may be interested in evaluating in your budget.
To establish the marketing budget, I always recommend answering the following questions:
What are the main strategic objectives for the coming year? How many malta phone number them can I realistically achieve?
Who is my target audience? What are the best communication methods to reach them? What is their level of loyalty to my brand?
Is it very difficult to reach my target audience? How can I track their actions and reactions?
Is my brand category one that operates in a highly competitive environment, with many brands fighting for market share?
How strong is the competition? How aggressive is my competitors' marketing?
What is the budget amount that management will approve for me? (I realize that in some cases this is difficult to assess, but there are ways to do it. Look at the approved budget from previous years and remember if there were any preliminary discussions about their vision and plans for the coming year.)
How to set your marketing budget
Below are some of the options you can use to arrive at the optimal amount for your marketing expenses for next year.
A percentage of income
Many companies set their marketing budgets by allocating 1% to 10% of their revenue to sales. This method assumes a direct relationship between revenue generation and marketing. In many cases, this is not the case.
For example , the launch of a new brand usually requires significant marketing resources, while the revenue it generates is zero. In these cases, your superiors must be clear that the investments in the first 2 years until the new brand is well established in the market will be greater than the returns ( NOTE: This is not a fixed rule, there are brands of brands).
Marketing Budget History
A detailed examination of past years' budgets against targets achieved will give you a good idea of where you are and want to be in the coming year. If your management team is happy with the achievements then these budgets will give you a very solid starting point for the coming year.
These years of crisis situations are often times of reflection and planning. Adjustments to the marketing budget for the following year follow the same process: looking back at the achievements of the current year and defining goals and resources for the following year.
"What will be the marketing budget for next year?"
That's the big question for which there is no easy answer.
Defining and detailing a marketing budget is only half the battle, the hardest part is getting senior management approval, so be prepared and back yourself up with a well-planned strategy so that all your work and sleepless hours don't throw you off track. I know what that's like, and what you go through.
When you are going to establish the marketing budget, remember something very important: the well-known phrase “ Look at the whole picture” . What this phrase means is that you should not just focus on your surroundings, cross borders and evaluate various options, because many times you find very efficient strategies and tactics that you may be interested in evaluating in your budget.
To establish the marketing budget, I always recommend answering the following questions:
What are the main strategic objectives for the coming year? How many malta phone number them can I realistically achieve?
Who is my target audience? What are the best communication methods to reach them? What is their level of loyalty to my brand?
Is it very difficult to reach my target audience? How can I track their actions and reactions?
Is my brand category one that operates in a highly competitive environment, with many brands fighting for market share?
How strong is the competition? How aggressive is my competitors' marketing?
What is the budget amount that management will approve for me? (I realize that in some cases this is difficult to assess, but there are ways to do it. Look at the approved budget from previous years and remember if there were any preliminary discussions about their vision and plans for the coming year.)
How to set your marketing budget
Below are some of the options you can use to arrive at the optimal amount for your marketing expenses for next year.
A percentage of income
Many companies set their marketing budgets by allocating 1% to 10% of their revenue to sales. This method assumes a direct relationship between revenue generation and marketing. In many cases, this is not the case.
For example , the launch of a new brand usually requires significant marketing resources, while the revenue it generates is zero. In these cases, your superiors must be clear that the investments in the first 2 years until the new brand is well established in the market will be greater than the returns ( NOTE: This is not a fixed rule, there are brands of brands).
Marketing Budget History
A detailed examination of past years' budgets against targets achieved will give you a good idea of where you are and want to be in the coming year. If your management team is happy with the achievements then these budgets will give you a very solid starting point for the coming year.