Marketing Budget-how much??

[Bonkors]

Hi Guys,

This is primarily a question for the marketing experts. I ask these questions at the risk of recieving "how long is a piece of string" answers.

How should you determine your marketing budget? Is there an ideal ratio/percentage of sales that should be your marketing budget e.g 10% of your turnover should be spent on marketing or 10% of your projected turnover reserved for sales? It may or may not depend on the industry- by how much?

There may be factors that also determine the budget i.e. does the business want to expand turnover or do they want to sustain the level of business going forward.

Look forward to your thoughts.

 

[Connections_Media]

Hi this link should help you http://vista-consulting.com/marketing-budget/

 

[XanderMarketing]

I think a lot depends on what your business is.

Professional service companies tend to spend less as they get business through word of mouth and repeat business.

An e-commerce business though on the other hand needs to spend a lot more to drive traffic to its site.

When we work with businesses we start with 'what is your marketing objective' and then say this is how much it would cost to achieve that objective.

 

[Stuart Dickson]

Hi,

You already have some good advice from people so no need to give you much more except that have you spoken to your local business link? Check their website out and they give you more advice on all areas of your business.

Its FREE and you can even meet one of their consultants.

Regards

 

[cliffECM]

A skilfully placed word in the ear... a nudge indeed in forums like these.. a viral film on youtube...if you make the right choice, marketinging and pr's costs will diminish against outcome...when picking your marketing and PR teams, go for seamless interaction between the two... but to answer your question - yep, roughly 10 - 15pc.

good luck

 

[Tom Wells]

I have rich and complete data on the marketing spending and staffing of over 100 organisations, fully searchable according to sector, business type, geographical spread and so on, covering turnover, total marcoms spend, PR spend, internal comms spend, and much more. It's not free, but a) it's very good value and b) as far as I'm aware it's the only database of its type in the world. It's called CommsMAP (Communications Money And People) and you can find out more about it at the Gyroscope Consultancy website- or give me a buzz on + 44 (0) 7808 583838.

Best regards

Tom Wells

 

[Call Tracker]

Make sure you are covering every angle with marketing efforts. PR, print adverts, email marketing, events. The money you spend depends on how much you want back and how much you have in the first place.

As a rule try and put together a marketing plan with an idea of the response you will get and what percentage of that response can be converted into sales. From this you can work out cost per lead and get an idea if it will be an affordable option.