A Budget for Your Marketing Strategy
An effective marketing strategy begins with creating a solid and well-thought-out budget. Proper allocation of dollars based upon fixed and variable costs as well as growth in tactics and programs will help prevent the negative impact of overspending. When assembling a strategy, many companies like to consider at least three scenarios that they can use to project both budget needs and expected results. For example:
- Lean Marketing Plan. Budget: 1 – 2% of your top-line revenue. This plan commits to engaging and retaining current customers with simple tools and strategies. This is ideal for companies that want to maintain their market position and do not have ambitious growth goals.
- Target Plan. Budget: 3 – 4% of your top-line revenue. The goal of this marketing strategy is to attract new prospects and retain current customers with advanced tools and strategies. This is best for companies that have moderate growth goals or plan to solidify their customer base.
- Stretch Plan. Budget: 5% or more of your top-line revenue. This plan focuses resources on driving leads, conversion and sales. To do this will require using complex marketing strategies and tools to penetrate new markets or greatly expand current ones. This option is best for companies that have ambitious plans to grow and/or increase their market share 20% or more annually.
By keeping the budget in mind when you make marketing strategy decisions, you will prevent overspending and you will have the opportunity to explore different strategies to find the best solutions for your business goals. To learn even more effective methods of marketing budgeting for next year, download a free copy of KEO Marketing’s Marketer’s Guide “5 Critical Steps for Planning Your 2017 Marketing Budget“.
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