Tips For Setting an Effective Marketing Budget James Yoxon
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The way businesses promote their products and services changes with time, and so does the amount you spend on marketing campaigns. Earlier, you used to worry about securing primetime commercial slots on TV channels, buying ad columns in a newspaper and getting pamphlets designed and printed. At this moment in time, you are spending a bigger slice of your promotional budget on social media campaigns, online content promotions, and email marketing.Â
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Many would suggest you keeping it realistic, depending upon your annual business revenue and expenses in different departments. But, a realistic marketing budget that is designed without considering organizational aspirations is like a doughnut without a hole.Â
Establish Your Marketing Goals ď ˝
The process of creating an effective budget for promotional campaigns begins with understanding your financial goals. Unless you know what strategic and financial goals you want to accomplish, you won't be able to suggest the right marketing budget. While your strategic goal can be the number of visitors you want to bring to your website, financial goals include the expected sales figure and the amount of revenue.
Know Your Potential Marketing Costs ď ˝
Once you have established your financial and strategic goals, the next step should be looking at different promotional strategies. While some promotional strategies help you achieve your goals faster, they also need to fit within your budget.
Consider Potential Hidden Costs ď ˝
Percolate report talks about that one common metric which businesses often neglect while analysing marketing ROI - Non-working spend. Non-working spend is the cost of creating the marketing content in the form of website information, graphic design and blogs. The cost that is incurred in measuring the performance of these promotional content is also considered as the nonworking spend.
Determine Your Budgeting Method ď ˝
The last step in deciding your marketing budget is determining how to allocate money for different online campaigns and advertisements. While you know your advertisement goals and the channels where you need to spend, the next important step is to ensure that you put money in the right amount across different digital channels.
Create a Shared Vision ď ˝
Setting a marketing budget is only a part of the overall battle. It is equally important that the need for digital transformation is understood across your organization. Especially those who control the purse strings need to be made aware of the complexity involved in executing advertisement plans.Â