Understanding Your Marketing Budget
Too much or too little. It is a challenge to find the perfect balance to sustain growth for your business while avoiding over extension. Most businesses live and die by their ability to gain awareness in their target markets minds. Often time’s businesses find themselves spending money on advertising but missing out on the return to their investments.
We want to help you get an idea as to what an appropriate amount would be to be put towards marketing budgets, as well as figuring out what the best practices would be to help your business thrive. See what kind of budget it takes to be competitive within your market!
This calculator doesn’t take into account ALL of the many factors that businesses might be experiencing uniquely. There are many things that would affect the budget, such as a combined sales and marketing department that share budgets, or the level at which marketing is responsible for gaining incoming revenue sources. There are no two businesses that will have the same needs for marketing, so be mindful of your personal situation and understand that success is relative.
Make the Most of Your Budget
The fundamental purpose of marketing is to bring products or services to market for consumers to purchase. To understand if your marketing is truly providing the desired result, you need to look at the returns on what you’ve invested into those channels.
Return on Investment or ROI is a key performance measurement for marketing your business. Different parts of a business’s marketing mix will have different costs associated to them and each will likely have different response rates. From those response rates there will also be different conversion rates. The goal of the business is to track these rates and weigh them against the costs of the different campaigns to find which channel provides them the greatest return. Find the channel that generates the greatest flow into your marketing funnel and allocate your budget accordingly to optimize your marketing efforts.