31 Mar Creating a Marketing Budget That Drives Growth
By: Julie Goode
Today 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:
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?
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.
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.
BUDGET FOR APPS
This one will sneak up on you, especially those apps that are set to auto-renew.
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 project management tools like Dropbox, Basecamp, and Zoom.
Remember: once the subscription expires, you may no longer have access to files.
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)
CONSIDER A PR FIRM’S BUDGET
You may want to consider a public relations 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.
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 doing so can get your full company’s buy-in. Then they can also feel excited to share your posts that they helped create.
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 but to get professional-grade photos, we recommend hiring a photographer or videographer. This is also nice because you can use the images and videos they shoot for evergreen content you can use throughout your campaigns.
PRODUCT LIFESPAN
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.
BUYER READINESS
Check out Lindsey’s video for information on buyer readiness: click here
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. 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, message us at info@germono.com.
