People will work on corporate identity, but not plan for the budget to implement it. Build the car, but not have enough money to put gas in the engine. While it’s essential to have an initial budget for developing your logo, website and marketing materials, it’s also crucial that you have an ongoing plan for how you are going to get the word out and a budget for putting your plan into action.
The best way to do this is to create a marketing strategy and setting a monthly or yearly marketing budget to make sure it happens. A marketing budget is a guide to ensure that you are staying on target with estimated costs vs. the actual costs.
Everyone has heard the phrase “You have to spend money to make money.” However many companies tend to under spend on marketing, thinking that by not spending they are saving. But by not spending on marketing, they are missing out on an enormous amount of business!!!
What does a marketing budget include?
Your marketing budget will include all of the prices that you expect to pay for each type of advertising you do. This would include printed materials, website development and ongoing maintenance and search engine optimization. It would also include radio and commercials, trade shows, advertisements in newspapers and other publications, mailings, etc.
How much should a business spend on marketing in their budget?
The amount of money a company should budget for marketing varies greatly by industry and business size. The US Small Business Administration and the Counselors to America’s Small Business define the variable for a proper marketing budget to be between 2% and 10% of sales. Some companies spend up to 20% of net sales. The average is between 4% and 6%.
Are there guidelines that help determine what a marketing budget should be?
There are guidelines that should be considered when setting your marketing budget.
Marketing is a fundamental ingredient for growth and profitability. Many companies fail simply because they do not allocate enough money for marketing. When done properly, marketing brings back solid returns.
Please reach out to the team at Empire Creative Marketing to learn more about the Importance of Marketing Budget and How to Implement a Marketing Strategy.