Monday, May 18, 2009

Setting The Marketing Budget

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You own a business and want to start inviting customers through marketing. Stop right there! Before you go any further you first need to set a marketing budget. The marketing budget is what you can afford to invest in a consistent plan to attract new customers. Marketing is not trying something for one week or one month then stopping...that is craziness. A proper marketing plan will begin to build a brand position for your company while also bringing new customers through your door.

Q: How much should I commit to market my business?

A: My recommendation for clients is to look at an initial marketing budget of up to 15% of their total sales to start.

Example: If your business does $1 Million in sales then I recommend you commit $150,000 towards Marketing.

As your business becomes more established the marketing plan should slide down to around 5-7% of total sales. The beauty here is the marketing budget will continue to grow because your sales will be growing.

Q: Why is it so important to set a marketing budget up front?

A: When you set a marketing budget up front it gives you a dollar figure to work with and helps in considering which marketing channels to consider.

Set the right marketing budget up front and it will put your business on the road to success.


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