Not having a sound marketing plan and the corresponding budget to help you with the execution is the biggest reason for any business idea to flop. You may have the greatest product or idea with you, but if you do not have an efficient marketing budget plan, it will just sit there and not see the light of the day.
If you really want your product to reach the heights it deserves then, you should invest in its marketing in an efficient manner.
To help you out with the same, here are some things that you must definitely consider while framing your marketing budget.
The amount of revenue you should spend
You should have a clear idea about the amount of revenue you are ready to spend for the marketing of a particular product. This cap helps in you formulating the whole marketing plan according to a sum you know you can afford. For most B2B companies, the popular practice is to allocate 2-5% of the yearly revenue for marketing purposes, but keep in mind that the number raises to 5-10% when it is a B2C company.
If you are creating a marketing plan for an existing product, then the budget can slightly drop but if it is new product, however, there definitely should not be a drop in the budget.
Your current marketing strategy
You should always analyse your current marketing strategy to see if it is actually working or not. You should check the performance of the returns according to your expectations. Measure how the investments are working and see what changes are to be made. If nothing’s working as per planned, then you should surely look for a fresh marketing plan.
Set up actionable and precise goals
When it comes to framing a marketing budget, one of the biggest things to keep in mind is to not set vague goals. The goals you set have to be actionable and precise in every way possible. Rather than setting up a goal like a 12% hike in the returns in the coming quarter, the better goal would be a2% increase in trade in show-related sales in the same time frame.
For each marketing step, you should set such precise goals and ask the team to report back to you on a regular basis.
Think about the future investments as well
The marketing budget should not only include the initial investment but also the future investments. For example, if you are creating a website from scratch, the investment in this exercise is not just that of the initial website designing phase. It also includes the overhead charges like the maintenance cost, content updates, reworking of the website and cost of training professionals working on it.
Since SEO and Digital marketing are the biggest avenues of marketing in the present time, you must include a budget specifically for this. For this, you may want to hire Dignitas Digital, a 360-degree digital agency in Philadelphia to get assured results.
Consider outside help
Speaking of hiring a digital agency, they can also help you create an overall content and marketing plan according to the brand logistics involved. If you are not getting the required results with your own marketing plan, there is nothing wrong in seeking outside help.
You will have to factor this in your marketing budget but getting it done from a team of professionals will surely help you get better returns. If you are a small business, you can also hire a professional marketing accountant to handle all the accounts related to the whole marketing plan.
Measure the performance
With Google Analytics and many more performance measuring tools used in the industry, you can now directly look into how the marketing strategies are performing. Look at all the demographics and reports of the numbers that your investments are bringing in to identify its effect.
For this, you need to invest in good software and the expenditure related to this should also be considered in your marketing budget.
Optimise and Revise
Last but not the least; you should always be open to changes. Optimise your marketing plan by looking at what’s working and what’s not. For this, you should look at all the avenues individually and not at the overall picture. If your social media marketing campaign is outperforming every other avenue, then you should be ready to put in more money into it.
This revision of the marketing plan and budget can be either done at the end of a quarter or even at the end of a month.
As you have observed, devising a marketing plan and allocating a budget for the same requires a lot of skillsets. To get the best results, it is always better to work with a team of professionals like Dignitas Digital. With their full-proof plans, you not only get assured results and also do not overspend.