Do you need a marketing budget?
Marketing stands as one of the most effective means of gaining clients or supporters. Yet, most marketing isn’t free. Because of this, marketing becomes a bit of a catch-22; you need to spend money in order to make it.
Whenever you begin marketing, then, you need a strategy. You need to be able to land right in the middle of being able to reach customers and turn a profit without spending a fortune.
You need to create a marketing budget breakdown. How do you do this?
5 Steps to Creating a Marketing Budget
Let’s get into the steps below.
1. Envision Where You Want to Be
When you started out on your business path, you likely had a goal in mind. Over the course of running your business, you’ve sought to fulfill this goal, and you’re always trying to build pathways to it.
Your marketing budget breakdown should be no different. Think of it as a roadmap to where you want to go.
Then, ask yourself which marketing tactics will place you on the right path. Do you want to prioritize connecting to your clients through video? Do you need fundraising campaigns?
2. Make a Model of Your Sales Funnel
Draw out your sales funnel.
Don’t know what a sales funnel is? Don’t worry! A sales funnel is simply a marketing term designed to illustrate how the company makes money.
If you have a sales team, bring them into this conversation and ask them already to have an existing sales funnel and If they do, take a look at it to see how it can help your marketing strategy.
If you don’t have a sales funnel, you can make one. First, picture an inverted cone. At the wide top, you have people who have just stumbled across your services. At the narrow tip, you have someone who has given money or purchased a product.
The rest of the funnel maps out your company’s plan for getting people from the top to the bottom.
3. Think About Implementing the Funnel
Once you have the funnel, consider the different marketing strategies that could help you implement it.
There are many different means through which you can market, including video, social media advertising, and print mailings.
Don’t know which ones to use? Contact a marketing consultant.
4. Determine the Cost to Create Your Marketing Budget Breakdown
After you’ve made a list of the forms of marketing you think you should use, take a look at the cost.
Then, based on that, form a marketing budget plan so you can make sure you have enough money for the task.
If the marketing cost is still too high for you, strip your strategy down to only the essentials. You can always build up to a more sweeping plan when you can afford it.
5. Implement the Budget
Once you have all of this figured out, go ahead and start implementing your budget!
Actively set aside money from each month’s earnings for your marketing. You should soon see the results. If you don’t, play around with your marketing strategy until you do.
As you get farther into marketing, make sure you can tell the difference between real check stubs and fake ones.
Importance of a Marketing Budget
The marketing budget is the way to ensure that the business is staying on its goal within the estimated cost. Some tend to spend less thinking that they are saving. But not spending enough on marketing tends to miss out on the enormous amount of the business. The marketing budget includes the prices that the business expects to use it for different advertising aspects. These advertisements include printed materials, search engine optimization, and ongoing maintenance. These advertisements also include appearing on radio shows or newspapers and many more. The marketing budget varies from company to company greatly depending on the size of the business. The average spent is estimated to be 4% to 6% whereas some companies spend 20%.
A few of the things a business needs to remember while planning the marketing budget. Those are:
- Reconsider the current strategy for branding. Is there any way people can recognize your company? Is there anything that proves that the business is credible? If there’s none, then change your plan.
- To maintain the company’s popularity, the company need to keep on advertising and promoting their brand. Also, check the strategies used for advertising. The strategy must attract targeted clients. Everything needs to be up to date so that the ranking is high in the market.
- Remember that the Advertising Budget is a line term of the Marketing Budget. Advertising Budget looks after the cost that a business needs to purchase media like online ads, TV commercials, Billboards, etc. It is recommended to use one-third of the marketing budget for advertising purposes and the rest two-third of the amount for marketing services.
Marketing is the main ingredient for the growth and profitability of the company. Marketing brings back stable returns when done correctly.
To stay competitive in the market and to maintain having profit; a company must:
– categorizes their main budget,
– have proper staffs, and
– use useful budgeting formulas.
Useful budgeting formulas enhance the promotion, advertisement of the company. Thus, a marketing budget is an essential factor that emphasizes the promotional effect proactively.
Need More Financial Advice for Your Business?
To get the most out of your marketing strategy, you need to have a marketing budget breakdown.
If you follow the steps above, you should be able to make one. This will put you on your way to financial success through your marketing!
Do you want more advice about your business? Check out the rest of the articles on this website!