31 Mar Marketing Budget: The 3rd Step of Marketing
By: Julie Goode
We’ve shared the first two steps of marketing: brainstorming and ideation, and marketing research, and NOW we will be going over creating your marketing budget!
Without proper marketing, potential customers may not be aware of your product. A well-planned and executed marketing campaign can help reach your target audience. That is why it is so important you allocate your funds well so you can execute a great campaign.
Keep reading for tips on what to take into account in your marketing budget:
In-house vs. outsourced
Choosing between in-house or outsourced marketing can be a difficult decision to make especially if you don’t know what you are looking for in your marketing. They both have costs and benefits that can be considered.
Click here for a great article that provides the financial risks and benefits that comes when making either decision.
Reach out to firms for quotes
How much does an agency cost? It varies!! An agency can run anywhere from $500.00 a month to $5,000.00. Grab quotes from reputable companies so you can determine the best fit.
Some questions to ask:
1. What are some successful campaigns for a business in my industry?
2. How do you bill (per project, per campaign, per month)?
3. What services do you NOT offer?
4. Can you provide any client references that I can check out?
Consider hourly support
You know you need to create a marketing budget but feel stumped on where to start. You may not have it in the budget to hire an agency to take over your marketing. No sweat, that’s why we created our hourly coaching sessions. These are low-cost and allow you to gain direct access to marketing advice for your individual needs.
Message us at email@example.com if you have any inquiries about our services.
Leave wiggle room
We know running a business can be busy! Sometimes marketing is put on the back burner and you may forget to leave some extra cash for it. Always leave some wiggle room in your budgeting for any unexpected marketing expense you may encounter throughout the year. Sponsoring a local event or charity or even donating to a local food drive- these things are wonderful to do but may have an expense associated with them.
Budget for apps
We recommend budgeting for paid apps/app subscriptions to edit or create social media marketing posts.
This is especially important if you create your marketing in-house. Just like any streaming service you may use, apps can range from one-time purchases to monthly subscriptions, or at a one-time fee for a year.
We know what you’re thinking, there are a lot of free apps to use. And yes, free versions of editing apps provide a great number of tools. However, to get the full experience of having more tools readily available to you to expand your marketing, you may want to consider budgeting for paid versions of apps.
Consider subscription fees
Considering subscription fees is important, not only for the software used but remember the annual fees for anything housing your content.
Remember: once the subscription expires, you may no longer have access.
Budget for videographers and photographers
Don’t forget to side aside money to hire any photographers or videographers.
Sure, your iPhone can capture some great content. To get professional-grade photos, we recommend using a photographer or videographer. This is also nice because you can use this content for evergreen content you can use throughout your campaigns.
Break it down by month
Not sure where to start when it comes to creating a monthly marketing budget? Try starting with the following:
- How long does it take for your sales department to close out a sale?
- What months have high operational costs?
- Are there peak seasons in your product? (For example, gardening may not be top of mind in December)
Involving other departments
Make sure you aren’t neglecting a department in your marketing plan. You should be asking your entire company or team for their input. Everyone’s voice matters!
Not only is it ALWAYS great to get everyone’s opinion. But in doing so you can get your full company’s buy-in. Then they can also get excited to share your posts that they helped create.
Consider a PR firm’s budget
You may want to consider a PR firm’s budget for your business. Trust the pros to respond to disasters, crises, or even negative publicity. The best part is that the firm is there to help maintain a positive image by positioning your company next to stories, editors, and topics that shine a light on your business.
Remember, one size doesn’t fit all and you want to find the right company that can tell your company’s story.
We’ve had the honor of working alongside Charrette Agency for our client’s PR needs, you can check them out here: https://www.charretteagency.com/about
When budgeting for your advertisements, it’s important to think about your product’s lifespan.
Ask yourself how long your product lasts, so you can overlap your ads to hit those cycles. For example, for a coffee company…how long does a bag of your coffee last the average household? You could time your email newsletters to remind and extend a special discount for return purchasers.
Check out Lindsey’s video for information on buyer readiness: Video
Industry and market trends
When creating your marketing budget, keep in mind any industry and market trends. You may find that you’ll need to adjust your marketing budget throughout the year. For example, if you are a real estate agent, you would keep in mind changing interest rates, bull versus bear market flows, and buyer access to income. We also recommend creating a contingency fund to prepare for unexpected changes within the industry.
Creating a well-planned marketing budget is essential so you can execute an amazing campaign to reach your target audience. If you liked any of our tips or have any further questions regarding something, send us an email at firstname.lastname@example.org