Keys to Containing Your Marketing Costs
A lot of thought should go into the process of budgeting for marketing costs. Choosing which marketing programs and tactics get the majority of the dollars is not an easy decision to make especially when considering the fact that all types of marketing tactics are changing, some faster than others. How you choose to allocate funds for your marketing efforts depends on your company, industry, target audience and company goals.
When you are planning your marketing budget, you want to consider the overall strategy. What growth strategy are you planning to pursue?
- Lean: a marketing strategy to maintain position and serve current customers.
- Target: modest growth with one or two product introductions.
- Stretch: An aggressive focus on driving leads, conversion and sales
Once you know your overall marketing strategy, you can give thought to the larger marketing costs.
Examine last year’s plan and metrics.
- What last year’s strategies were.
- How effective they were in achieving their intended purpose.
- Where you would like to make improvements.
- Where your industry is going.
- How prospects within your target audience move through the buyer’s journey.
Analyze the areas of online changes.
A lot is changing in the marketing world, especially the online marketing world. Video is becoming the preferred method of viewing advertising messages, access by mobile devices is growing practically exponentially and search-by-voice is rapidly growing over standard search-by-keyboard.
Give thought to the upcoming changes. Consider if they would fit into your particular marketing model and if so:
- What is the cost and how will it impact the marketing budget?
- How many people will be needed to implement and support it?
- What is the time necessary to implement it?
- How will the expected results be used to improve other marketing efforts?
Put the marketing strategies and tactics into a framework.
Consider five areas of focus:
- Goal: Increase audience propensity to purchase.
- Example tactics: SEO, app indexing
- Demand Generation
- Goal: Provide qualified leads
- Example tactics: Expanded mobile advertising, optimized digital video.
- Sales Empowerment
- Goal: Empower the sales team
- Example tactics: Expanded content marketing/downloadable collateral.
- Retention and Loyalty
- Goal: Incremental revenue from current customers
- Example tactics: Email marketing
- Metrics and analytics
- Goal: Targeted results/ROI improvement
Marketing budgeting and allocating of marketing costs is not the daunting task it appears to be at times. Even with the changes in technology and the ever-growing move to digital marketing, careful evaluation and planning can lead to a marketing budget that will help you reach your marketing goals with a minimum of surprises. To learn more about effective marketing budgeting, download KEO Marketing’s free Marketer’s Guide “5 Critical Steps for Planning Your 2017 Marketing Budget”.
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