Whether you own a small business or a large corporation, the goals for both are practically the same: a great ROI as a result of a great marketing campaign. This means that a budget for marketing must be set in place. The following are some practical tips for creating a marketing budget, guaranteed to bring you the best results.
Make calculations of your marketing budget
The first thing to do is to organize your financial situation. Make sure everything is in place. Then you can start allocating a percent of revenues to marketing. The usual is to allocate a percent of the present or projected revenues. This is 2-3 percent for run-rate marketing and around 5 percent for start-up marketing. However, there are other factors that must be taken into consideration. These are the other factors that will determine a correct allocation of the budget. They include the type of industry the business is, the size of your business, and the growth factor.
So, if you are a small business with revenues of less than $5 million, experts recommend you allocating 7 percent of these to a marketing campaign,which you can split into brand development and business promotion. You could even take it further to 10 per cent as a risky move. The point here is that your budget should not come from what is left over after calculating all other expenses. It should be a priority when splitting the overall budget of your business.
It is not only about how much but also about how you spend it
Now you have to come up with a plan on how do you want to spend this budget. Factors that will help you determine this are the size of your budget, past experiences, and the type of audience you are targeting. For instance, if you have a rather small budget, you might want to start with social media, and invest in some small printed ads, or online ads. Now, if you have seen success in experiences from the past, use them again, even if there are more expensive alternatives. If your clients respond well to your Facebook posts, for example, keep using that strategy. Be knowledgeable on what kind of channel provides you with a better experience on targeting the right audience. Verify if it either is printed ads or social media posts, for example.
The bottom line here is to have a plan and to execute it. Outline the costs of how you are going to achieve your goals within certain time frame.
Track your ROI to make better decisions for the future
So you have executed your plan and now it is time to reap the benefits. It is important here to determine what were the strategies that worked and which the ones that did not. Keep the good and discard the wrong. No marketing plan is inflexible. It is more important to improve those things that did not work better and have alternatives than to stick to a plan that is not as effective as wanted.
Verify what is a better angle. What worked? How can you measure the impact of success? Some strategy results are hard to measure or put down on graphs. However, you should be able to see the costs of not having these in your tool kit. This process of budget maintenance is recommended on at least an annual basis.
A smart marketing plan will provide a good return on investment. Marketing agencies Vancouver are ready to provide you with the budgeting help you need. Build a great strategy applying the advice of the experts.