Whether you are a web design company in Fort Collins or a retailer in New York, marketing is essential to the success of your business. Creating a marketing budget will help you determine how much money you can devote to marketing and how to spend those funds most appropriately.
So, how much should you allocate to your marketing budget? Opinions differ but many businesses allocate anywhere from 5% to 15% of revenues to marketing. New companies should consider allocating more since it is especially important for them to get their name out there. When deciding on the amount to budget, also consider industry standards and of course, what you can reasonably afford.
After coming up with an overall budget amount, allocate the funds to different marketing activities. Be sure to factor in the time, effort and expense it will take to do market research and put together a marketing plan. Also consider the travel expenses associated with marketing efforts. For instance, if you attend conferences, networking events, or trade shows include the travel expenses associated with those activities in the budget.
Keep in mind that some marketing can be done inexpensively. So, even if you can’t afford a large direct mail campaign, you may have room in your budget to send out a monthly e-newsletter or email blasts. You can also blog, update content or post videos to your website.
No matter what type of marketing tactics you try, be sure to track the results of your efforts so you understand where your dollars are being put to good use and where they aren’t.