Is it possible to work without a marketing budget? Yes, but you will have to forget about the good pace of development of the company and its competitiveness. In the article, experts of the agency “Precisely.” told how and why to plan a marketing budget to ensure business development.
What is a Marketing Budget
In simple terms, a marketing budget is how to build phone number list a company’s plan of expenses for the work of the marketing department. It is made every year – before the beginning of the reporting period and after the development of the marketing strategy. In large companies, the marketing director works on it , and in small ones – the marketer.
The marketing budget can be designed as an Excel table, where the marketing department’s goals for the coming year, the main expense items and the tools used are clearly defined. In such a document, it is easy to record marketing expenses and compare them with the money allocated for activities.
Why do you need a marketing budget?
Planning and control of marketing expenses;
Resource optimization that helps achieve better results with minimal costs;
Formation of company marketing goals and evaluation of their effectiveness ( KPI );
Evaluation of the results of the marketing department’s work.
A marketing budget is also important when looking for investors, because it reflects what resources are required to achieve the company’s goals. This increases the likelihood of attracting funding.
What do marketing costs depend on?
Size of the company. A large organization can spend much more on marketing than a small business founded by a sole proprietor.
The number and level of competitors. The larger inr valuti bez nastavka bilo kakvog složenog the competitors and their activity, the more money you have to spend on marketing. Of course, you can leave everything as is, but there is a high probability that the competitor will lure customers away.
The set goals. When entering a new market, costs increase, and in the off-season for business, they decrease.
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Main expense items
Each company independently determines the cost items. Most often, they include:
Advertising
Advertising can be divided into two categories: Internet and offline advertising. The first includes contextual, targeted and blogger advertising. The second includes advertisements on television, radio, newspapers, billboards, etc.
Marketers often have a question: should advertising be included in marketing expenses? There is no right answer, but I would like to give some advice. If advertising expenses are large, it is better to maintain separate budgets: marketing and advertising. In this case, it will be easier to determine the KPI of advertising campaigns, analyze and adjust them, if necessary.
For example, if a strong competitor appears in the middle of the reporting period, you need to increase the amount of advertising to maintain your position. Changing the entire marketing budget for this is time-consuming and inconvenient – it is better to allocate separate funds for advertising.
Promotions
These include thematic promotions, tastings, collaborations au emai list with partners and raffles. Such events not only attract visitors, like targeted advertising, but also aim to improve the company’s image and increase its recognition. Therefore, advertising promotions and other similar events are included in a separate expense item.
Internet promotion
creation, promotion and support of the website;
development of social networks;
email marketing;
content marketing;
working with influencers;
working with reviews;
creation of chatbots, etc.
When calculating, do not forget about paying for subscriptions to services used for promotion. For example, when running social networks, specialists often use services for automatic publication, parsers and programs for editing images.
