HOW TO SET A MARKETING BUDGET
Apr 06, 2018
There are two popular ways to set a marketing budget. One by percentage of turnover, the other by the likely cost of the task in hand.
The turnover method
Most companies allocate between 5 and 10% of gross turnover. If marketing is responsible for all your business growth (for example if you have no retail stores, direct sales force or telesales) then this figure may be higher. If you’re going for higher market share, then the figure needs to be higher.
The historical method
Some companies base marketing budgets on what was spent before and achieved before. If growth is needed, then so is investment in this area.
The ‘what’s needed’ method
The other way is to calculate a rough estimate of what’s needed in the year ahead. These are some headings to allocate finds to, which may help you in compiling your budget:
- Website creation or improvements or updating
- Web hosting and domain renewal
- Paid advertising space
- SEO and PPC
- Exhibition costs
- Promotional gifts
- Stationery and business cards
- Direct mail shots and e-shots
- Social media content and advertising (boosted posts etc)
- Brochure creation (whether in print or online)
- Photography and video
The ‘ask the expert’ method
Come and see us for a free no-obligation appointment. Tell us what you want to achieve for the next twelve months and we’ll tell you the approximate cost. We’ll write into a document to give to your board which will also state the likely return on investment (ROI). You’ll get a better ROI from a hugely experienced team like Creative Marketing Services than most of our peers. We’ve a great track record in delivering results. Phone Andy or Mark on 0113 287 7973