Most businesses contemplate if it is worth investing in a marketing budget. All the costs involved in spreading the word about your business tend to add up quickly that it can soon give you a severe headache. However, if you look closely, you will find that investing in marketing is perhaps the wisest choice you can make as a business owner. After all, imagine who will know your business exists if you won’t put some effort into getting it seen.
Marketing budgets typically vary for different projects based on the efforts a business is ready to put in to grow and develop strategically and meaningfully. Additionally, you should constantly monitor and change your marketing cost depending on a campaign’s performance.
Unfortunately, not many people understand the very nature of marketing and the associated budgeting rules. Luckily, this article points out some signs for business owners to know when their marketing is underfunded and how it impacts their success or promotional reach.
Often, marketing budgets are underfunded because they are seen as non-essential costs. Every time a company goes through a rough patch, they look at their expenses from the last fiscal year, which gives them an understanding of where all their dollars went and if they should make changes to their budget for the upcoming year.
Typically, if they find that certain marketing moves didn’t return on their investment, a business tightens its budget. In an event when a business must choose between reducing the marketing spend and paying for essential costs, they will most likely choose the former over the latter.
However, when you completely cut your marketing budget, it can significantly reduce your chance of getting new customers. Additionally, it might also reduce the number of returning customers. In simple words, it has the potential to shut down your business entirely.
When a company’s marketing efforts stop, so does the communication between the business and its customers. This leaves the customers wondering about the brand’s stability, and eventually, they forget about the brand. Fortunately, you don’t need a boatload of money to market your business efficiently.
There are several low-cost marketing methods you can leverage during tough times. For instance, a few affordable marketing methods include creating organic social media posts, joining local Facebook groups, sending emails to your clients, writing helpful blog posts, going live on Facebook and Instagram, and giving out practical branded items that can be used daily like hand stress balls to relieve carpal tunnel.
There are several methods businesses leverage to calculate their marketing budget. Generally, the right one depends on the size of your business, how long you have been in operation, and your current sales.
For organizations that have been in business for one to five years, assigning around 12 to 20 percent of your gross or projected revenue for marketing would be enough. On the other hand, well-established companies need only to use about 6 to 12 percent of their gross or projected revenue.
Initially, you will have to build a foundation for all your day-to-day marketing activities. For instance, an up-to-date website is the key to effective marketing. Why? Because it can be used to both showcase and sell your services 24/7.
Consider using five percent of your marketing budget to update your website once every three to five years. Additional factors in setting up a marketing foundation include brand, marketing strategy, website design and development, etc.
Without a strong marketing foundation, your everyday marketing activities will either be not so effective or an absolute waste of money. When it comes to marketing spending your marketing budget efficiently, here are a few tips.
Determine your marketing goals for a year, and set your marketing efforts around them.
Is your foundation in place to reach your goals? For example, do you have a clear and updated website? Do you have tools in place to measure the success of your marketing investment? Do you have a strong strategy?
Start by addressing the weakness in your marketing foundation, then plan what’s remaining for day-to-day marketing activities.
Marketing can make or break your business, and all that matters is the difference between a lazy brand and a brand that wants to grow. Whether you choose to send out Facebook ads, give promotional products, or invest in a giant billboard, it is essential you get your business out there.
Even if your marketing budget is pretty low compared to other big brands, or your competitors, you should not abandon marketing. There are still several ways to keep the ship sailing through rough waters. All it takes is a bit of resourcefulness, creativity, and brainstorming.
