Every company should set up a budget for marketing. Marketing is an integral part of the business and your business won’t grow unless you use various marketing strategies to attract more customers. Here are some tips to set up a marketing budget for the business.
You should set up a marketing budget depending on your business goal. You should first decide where you want to see yourself in the next coming years and then set the budget accordingly. For example, if you want more growth within a short time, your marketing budget should be more.
The type of marketing strategy you apply depends on which stage of your business you are in. There should be a different strategy for the planning phase and a different one for the growth phase. The marketing budget will also vary accordingly.
Consider non-promotional activities
In setting up a marketing budget, companies usually think of the amount needed for advertisement, website, brochures, etc. However, there are other costs involved as well. These include costs for attending trade shows and other networking events, training employees, etc. You should include these costs in your budget.
Consider timely events
The costs of an advertisement or other promotions won’t be the same throughout the year. During holidays or any important event, the prices will go up. For example, it may be more expensive to buy a slot for a TV advertisement when there will be an election.
The prices of advertisements may also drop after such events. So, you should consider this fluctuation of cost when preparing your marketing budget.
You should focus on attaining new customers and retaining the old customers as well. The more customers you retain, your client base will be stronger. So, you should invest in various customer loyalty programs. You should allocate separate fund in your marketing budget for the loyalty programs.
You might not get the results of your marketing efforts immediately. You should have patience. You should be flexible with your budget so that you can incorporate more promotional activities if you need to. Set up a realistic budget, considering all the contingency factors.