No matter the industry, company size and goals of a business, no two organisations will have the same marketing budgets. What is essential for a business is figuring out how to spend it wisely, which can be a challenge. Each marketing manager you ask advice from about where to spend the budget has a different answer. For some, marketing budgets are not significant, but what is, however, is sticking within a specific profit margin. For them, what matters is whether the money being spent to market products and services is profitable, and increases their profit margin. Increasing the marketing budget if it brings in more revenue is what companies are doing to remain on top.
If you’re struggling with allocating your marketing budget, this blog is for you. The points below will help you make an informed decision.
Resources Is The Most Important Budget Factor
Resources are essential aspects when it comes to your budget. There is no moving forward without hiring the right experts with experience and insights, who can also share your vision for growth. It is essential to discuss financial resources with your marketing team and how their strategies for marketing the company’s products will be executed. There are plenty of options such as drafting in internal help, and this could be one of the full-time employees, or even interns and freelancers.
In most cases, the decision will be driven by the experience of your current team and where they need assistance. The second option is to employ an external expert who will help you execute your marketing strategies. One or both of these options will be required to manage your marketing effectively.
Spend Money To Make Money
Small businesses and new companies can’t readily compete with established brands when it comes to the marketing budget. But that does not mean they should be spending less than those that are set. An up and coming business can’t make a profit until the audiences are aware of their products and services and are converted to customers, and to achieve that, the company will need to spend. A small business should be paying more for their marketing to introduce its brand to a broader audience, and the budge can be based on the projected revenue. A budget of between 10 and 20% is a significant number. Alternatively, small to medium enterprises will need to creatively find ways to spend their marketing budget on awareness such as using social media marketing.
Spend The Budget Wisely
The first phase of any marketing campaign is experimentation. Find out what marketing campaign works for your company and how you can tailor it before pouring money into it. Set aside a portion, about 10% of your budget to experiments and trials. Run A/B tests, and when you find out what works, go all-in until it peaks and stagnates. (But also be strategic).Then find something else that works. Focus on just two or three channels to start with, and then scale up as you can afford to. The more you run tests, optimise and reallocate, chances of bringing in more than you’re spending will increase.
These are just three marketing efforts that can help your small business generate revenue. If you find a method that works, use until it does not work any longer, or your objectives change and then find another practice that will better your chances of success. The marketing budget is there to be used and if used wisely, can bring untold benefits to a company.
If you feel you’re not cut out for this, get in touch with us at SandBox, and we’ll help you leverage on your marketing budget.
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