Marketing Budget: Why is it important?
For many businesses, marketing budget is critical to its success. It will form the basis of any expenditures that will be involved in a marketing campaign. Marketing is much more than just doing promotions and advertising. If you want to stay competitive and maximise your profits, your budget must cover the many areas of planning, pricing and distribution of your product or service.
Why is a marketing budget important?
ROI (return on investment) and your marketing budget go hand in hand. Your marketing budget will determine how much money you have to put in, and how are you going to spend it. Being unaware of the capital available and how it is being used is how many companies go under. Without an effective marketing budget and plan, any business may find themselves unable to pay back the costs, and owing companies money.
It can even result to potentially owing customers something that cannot’ be delivered. Even employees could lose out. No matter who are impacted by your poor planning, it is still equally damaging. A massive hit both in reputation and in financial standing will take toll on your business.
A well-arranged marketing budget will help you in the planning process and in measuring and managing the money you have, ensuring every expenditure is duly considered.
Make sure you have researched the following areas, before establishing your marketing budget and plan:
- Industry and market research
- Competitor Analysis
- Marketing audit
- Internal marketing performance records
What does a marketing budget include?
our marketing budget will include all of the prices that you can expect to pay for each type of advertising you do.
- Printed materials, design and production resources
- Website development and ongoing maintenance and search engine optimisation
- Time and energy put into developing a campaign
- Your marketing strategy: like your social media ads, PPC banners, content marketing, direct mail, targeted online display ads, and email marketing.
Where to spend the marketing budget?
The areas that you can include within your marketing are the following:
- SEO and content marketing
- Your website
- Email marketing
- Print advertising
- Social media
- PR and media
- Event marketing
- TV/ Radio
How much should a business spend on marketing in their budget?
The amount of marketing budget that you will use varies greatly by industry and business size. You should know exactly what you’ll be selling and who will be buying it so that you can create a media plan to get the message out.
Marketing is a fundamental ingredient for the growth and profitability of your business. Many companies are failing simply because they do not allocate enough money for their marketing. When done properly, marketing will surely bring back a thousandfold.
At 360 Dental Marketing, we provide world-class dental marketing and communication solutions to Australia’s dental and corporate dental practices. Ready to discuss? Get in touch with us today – 1300 777 847 or send an email to firstname.lastname@example.org