Use that money wisely
Marketing doesn’t just include smart ideas to showcase what your brand has to offer in the best possible way, to the right audience, it also involves right budgeting technique. A good market strategy focuses equally upon usage of optimum resources and right efficient budget allocation for those resources. You might know where to spend but the question is ‘how much should you spend’?
1. Set your budget with strategists
Usually, people have no clue about what their ‘marketing budget’ is and honestly that is why they hire experts to guide them. As that might stand true for your clients, for companies there are marketing strategists that do the math. There are simple questions that narrow down your marketing expenses: What do you wish to accomplish for the company by next year and how much of it can realistically be achieved? What is your identified targeted audience and how do you plan on reaching them effectively? What sort of market condition does your brand stand in- highly competitive, basic competitive or minimally competitive? How much can you see yourself spending for your company’s marketing needs?
Once you answer the above-mentioned questions, your strategist can help you to decide the exact allocated budget for your marketing campaign.
2. Let your revenue decide
Commonly, companies adopt a method that includes giving away some percentage of their revenue for marketing, which may vary from 1% to 10% of their total revenue. Considering new companies cannot embrace this method as their initial revenue generation may be zero or very low and hence, this method is mainly adopted for established companies.
3. Comparison conclusions
A comparison of previous year’s marketing budget and the actual accomplishments made gives an easy judgement of how much should the company restrain or add onto their marketing budget needs. Taking a look at how it worked previously helps you decide how you must modify it presently.
4. Know who you’re up against
If you gotta beat them, you gotta know them first! One can always try and stay at par with the tactics and expenditure of their competitors in terms of their marketing strategies and budget and can set their limit accordingly to stay one step ahead of them all. This is just a simple tool to at least figure out a rough number out when it comes to how much you should spend!
5. Random allocation
It works better than you think and used commonly than you might wonder. As the name suggests, there is no particular technique or calculations. The marketing strategist guesses a certain amount to be used and then follows up with spending it as and when needed. No hassles and no calculations, sounds easy doesn’t it?