In recent months, redhotblue had a brainstorm on the hot topics we come across as a creative agency with our clients. One topic that was brought up included the aspect of businesses, small or large, creating a marketing budget to assist with a successful marketing plan.
The very first step for a business is to establish a marketing budget. One way in doing so is to set your marketing budget to fit your business goals, also known as goal-based budgeting. A marketing budget is your first point of call as it will be the determining factor as to what activities will be planned in your marketing program. There is no point in planning your marketing activities without a pre-determined budget as it gives no guidance or boundaries in setting specific activities.
With an established budget, it will allow you to manage your marketing program well by allocating time and funds over a variety of aspects which will help achieve your business goals. Each allocation should represent an important business investment.
In developing your marketing budget it is important to not just factor in advertising, public relations, direct mail and promotions. While these are important factors, you also need to include upfront planning, communications and ongoing monitoring and tracking of results.
BE AWARE: Think before trimming your budget! If you begin to cut back on marketing, you risk putting your business on a dangerous downhill slide.
As you cut cost to save money or time it leads to fewer communications avenues which in turn leads to losing sales or customers and will continue to affect your revenue.
If your business has no marketing budget, you will not achieve your business goals or will over-spend in trying to do so.