Momentum - Business to Business Online Magazine MOMENTUM February 2020 | Page 24

MARKETING RACHAEL MORGEN Online Marketing Manager Empire Creative Marketing www.empiread.com THE IMPORTANCE OF A MARKETING BUDGET P eople will work on corporate identity, but not plan for the marketing budget to implement it. While it’s essential to have an initial budget for developing your logo, website, and marketing materials, it’s also crucial that you have an ongoing plan for how you are going to get the word out and a budget for putting your marketing plan into action. The best way to do this is to create a marketing strategy and set a monthly or yearly marketing budget to make sure it happens. A marketing budget is a guide that will ensure you are staying on target with your estimated costs vs. the actual costs. We’ve all heard the phrase “You have to spend money to make money.” However many companies tend to underspend on marketing, thinking that by not spending you’re saving. But by that logic, you’re missing out on an enormous amount of business! What does a marketing budget include? Your marketing budget will include all of the prices that you would expect to pay for services and advertising. This would include graphic design, printed materials, website development, and ongoing reputation management. It would also include radio and commercials, trade shows, advertisements in newspapers and other publications, mailings, etc. What should your marketing budget be? The amount of money a company should budget for marketing varies greatly by industry and business size. The influential business financial planning sites FrogDog.com and Forbes.com both agree that your marketing budget should be between 5% - 8% of your total revenue, depending on whether you want to maintain your market position or gain a greater market share. Use these guidelines. These guidelines should be considered when setting your marketing budget.  • First, consider any development 22 MOMENTUM or refinement of your current branding. Is your image up to par? Do you have a professional logo, website, and marketing materials in place that represent you as a credible company? Is there consistency in the look and feel of your materials? If not, what needs to be revamped? Consult with an agency if necessary if you’re having trouble determining the current effectiveness of your brand. • Second, what are the ongoing expenses of advertising, maintaining and promoting your brand to your target audience? If you stop advertising, they will forget you. If you don’t keep your website and materials up to date, you will lose credibility and rankings with the search engines. What is your plan for keeping your company visible and what will it cost? • You can visit the Small Business Administration (Sba. gov) for more guidelines and information. They have charts that compare revenue with ideal marketing budget percentages. They also list variables that need to be considered. Marketing is a fundamental ingredient for business growth and profitability. Many companies fail simply because they do not allocate enough money for marketing. When done properly, marketing brings back sold returns.