How Much Should You Budget for Marketing?
You know from experience that driving growth in a competitive market is about doing more with less - every investment has to count.
Overspend and you're throwing good money after bad; underspend and you might not get the results you need. How do you right-size your marketing budget?
Some use a percentage of sales, an amount based on what activities cost, an amount they are comfortable losing or some combination of these to calculate a budget.
These inputs are part of the equation but they do not factor in required revenue outcomes. How can you right-size investments if your budget is not based on revenue results?
Right-sizing your marketing budget and ensuring that your investments return, requires the following:
- The ability to break down and quantify marketing performance by stage - which aspects are performing well and which are not.
- The ability to calculate your marketing stage performance in budgetary terms and forecast future results based on necessary revenue outcomes.
These abilities answer the "how much?" "where?"
and "what will we get?"
questions you need to right-size your marketing budget.
Ensuring that your marketing budget adds value to the business is not a simple task - it requires deeper analysis through better tools and experience.
to gain the experience and a deeper analysis of your marketing budget.