Marketing Budget: How to Plan It Correctly

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Budget planning is a vital process for a company. Without it, it is impossible to make a profit, and ultimately, the company's existence. And the marketing budget is an important component of it. It will not be possible to promote a product without it.

Need to create a marketing budget but don't have the staff on staff? Contact Fractus.

Marketing budget: features
A marketing budget is a financial plan that outlines a company's expenses, revenues, and profits related to its marketing activities.

The marketing budget is formed at the corporate planning stage. It is part of the overall business plan . Funds are primarily invested in those activities that will provide maximum income.

Marketing budget: features

The marketing budget depends on many criteria. This antarctica email list 5644 contact leads is the company's position on the market - its scale and condition (a startup requires more investment), income, advertising channels, and the scale of activities. Therefore, each company calculates it in its own way. It is impossible to name a specific amount. In general, the indicator of expenses on marketing activities fluctuates from 2% to a quarter of the company's income.

Principles of making a plan
There are a great many ways to plan a marketing budget. Each company has its own, and they can change from year to year. But in general, they boil down to following some rules:

Define strategic marketing goals. It will help to answer the question: what does the company want to achieve? Promote a new product? Increase awareness? Create a need for the product? Achieve increased sales?
Find the target audience. Selling to everyone is a waste of money. It's like shooting blindly in the hope of hitting the target. You need to decide who exactly to sell to. Who are these people, their social status and income, do they need the product, will it help solve the problem - the answers to these and similar questions will lead you to the right target audience.
Assess financial capabilities. Use data on income for previous periods and income forecasting - without excessive optimism, better according to the negative scenario. And also take into account the company's expenses for each month. And set priorities: what is more important, to purchase equipment, attract a great specialist or plan funds for marketing. Only after all these actions are free finances directed to marketing activities.
Select priority products. These are goods or services that are worth spending money on to promote – they will pay off. First of all, a new product – just developed and being launched on the market. Also products with bright distinctive and even unique characteristics, without critical shortcomings, from profitable segments.
Identify the promotion channel. Use online marketing, give preference to TV advertising, call customers directly or place a billboard in the city center? The choice will depend on the audience, product features and financial possibilities.
Study your competitors. It would be a good idea to find out how they operate. Find out how they promote their product, their percentage costs, their channels and initiatives, what they are doing well and what they have abandoned.
Principles of making a plan

Services from Fractus – the best solution
If you need to develop a marketing budget, but there is no specialist on staff, Fractus specialists will help. Contact us! We will analyze the business and its condition, draw up a plan, select a channel, investment in which will bring the maximum payback. And without unnecessary expenses.

We will be happy to help!

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