“You cannot afford not to set a marketing budget for your business”
Clarifying the importance of a marketing budget for businesses is hard. It is an essential aspect that increases brand awareness and generates revenue for businesses globally. From startups to local businesses, everyone benefits significantly from what marketing has to offer.
Essentially, marketing is used to promote and generate increased revenue for businesses globally, but many businesses struggle to decide what budget they should allocate to their marketing campaigns.
If there is one thing we can tell you, it would be that you can’t afford NOT to market your business!
The digital tide is sweeping away businesses who have not progressed in recent years and adopted new means of marketing, so don’t fall victim to the new technologies – use them to your advantage!
The following aspects determine Marketing Budgets:
How you want your Business to Progress.
Determine where your business is right now and where you see it in the future. If your brand is performing in your industry, your marketing costs will be slightly less than if you are relatively new with new products/services launching. Typically the more assertive you are about your goals, the more of a budget you will need to allocate to see results.
Competitors in your Industry.
If you are sitting back not giving much thought to your marketing budget – just remember that your competitors are out there getting the business you are missing out. Becoming a leader in your industry means reaching your target market effectively where they work and play, through all of the appropriate channels of communication.
How Long you have been in your Industry.
Understandably, start-up businesses will have to invest a higher budget in marketing costs to get established and get off on the right foot! It doesn’t mean that once a business is established, its marketing efforts can take a back seat. We have seen many cases of businesses that have been set up in their industry for many years, partaking in little or no marketing efforts – being swept away by new start-ups, who are working with marketing companies to develop a strategic plan for growth.
The Market Area
Larger businesses who operate nationally or internationally should allocate a bigger budget than smaller businesses who operate locally.
Various Marketing Channels
There are many channels available these days as a means of promoting businesses both online and offline. To learn the right amount of marketing budget, marketers should consider where their target market frequents and the most appropriate way to reach them. Many businesses are opting to place ads on social media platforms such as Facebook and Instagram, which allows them to reach their target market more effectively.
Check out the online marketing services we offer at K2 Analytics!