How to Budget for Marketing
How to Budget for Marketing
Here at Breeze People, we know the importance and power of marketing. However, deciding on how much budget to put towards campaigns can be difficult and confusing. Especially if you are only just starting out as a business. There are some tried and tested ways for you to spend money towards your marketing.
So, what should you be doing in order to make sure your marketing budget is right for your business?
The typical way to create a marketing budget is to gauge how much money your business is making. From there, you can determine how much of your profit you wish to turn towards marketing.
Smaller businesses may use only around 1-2% of their revenue in order to make up their marketing budget. This covers social posting, community engagement and other simple methods of ensuring current customer loyalty. However, it is not a good method for those businesses wishing to grow their audience further.
For this, you would have to use a budget that matches around 3-5% of your overall revenue. This increased budget can be used to attract new leads, on top of retaining previous customers, and it is an appropriate growth model for companies that are wishing for a gradual growth.
However, for those wishing to grow rapidly as a company a much bigger percentage of revenue is needed. A minimum of 5% and more is needed for this particular marketing strategy. This can pay for advanced marketing tactics, a team of professionals and help to grow your audience at a much more rapid rate.
Match the Competition
Marketing is an effort to best the competition and win the custom of your joint target audience, at heart. So, theoretically, you only have to outperform the competition in order for your marketing to be successful. This may be a case of outbidding them to appear top of searches via AdWords, spending more money going to events or even putting a larger budget into your physical marketing such as banners and radio spots.
This may be a case of having a dedicated marketing team to help you in your efforts or seeking out freelance teams when you feel you need the edge over the competition. Keeping your position, social media, advertising and content above and beyond is the goal of this type of marketing. If your competition is doing it, then you should be doing it better and using a budget that matches this.
Zero to Hero
For some, marketing is the last thing that they believe their hard-earned money should go towards. Instead, they choose to spend as close to nothing on their marketing as possible. Sometimes this is due to money being tight in the first place. It does become an issue, however, as you need to grow your brand to make money, but don’t want or have this money to put forward in the first place to help this growth.
In this case, it is best to do your marketing budget on a case by case basis. When events are happening then is the time to raise your zero budget to more, such as for press releases or event staff. Perhaps not as effective as a long-term budget, but a strategy which might make it possible to find some success when you do push money into marketing.
Get in touch with us online or call 02380 015 000 and we’ll be delighted to assist with marketing your business with high-quality promotional staff. We ensure they are the best people to represent your brand!