how much should you spend on marketing?

How much should you spend on marketing?

I’m often asked the ‘how much should I spend on my marketing budget?’  question….and my response is always…well it depends.

The bottom line is that the marketing budget for your business is not something that can easily be determined by a formula. Spending on marketing support varies widely, with industry commentators estimating that most companies spend between 2% to 4% or 22% to 25 % of gross revenues depending on the business model.

So if you’re sitting down to plan your marketing budget, here’s some points to consider.

What are your goals? Stating the obvious – until you define your goals, there’s really no logical way to establish a marketing budget. You will need to have a well defined marketing strategy with measurable objectives.

% of gross revenue If a company has aggressive goals for increasing revenues, then establishing the marketing budget as a ratio of the revenue goal makes sense. Reducing marketing spending is likely to reduce the acquisition of new customers or even jeopardise the company’s current market share. Companies that have plans to grow rapidly generally need to spend a …

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Social-media-checklist

Our Social Media Checklist

Look before you leap!

We still come across companies that have jumped into social media without a clear plan. Most times they’ve registered a few social profiles and then hit what I like to call…’the Great Silence.’ So where do you start? I always work through this checklist when I first sit down with clients.

It’s important to establish that social media is not a ‘quick-fix’ strategy, it’s a fundamental shift in the way that companies and organisations now relate to their audiences.

What are the Social Media outcomes you expect? It’s now universally accepted that Social Media can…

aid in Branding & build awareness build community around brands & organisations extend customer service drive leads & sales enhance/protect reputation lead to opportunities like product development

What do you want it to do for your brand?

Brand Positioning

Is there a clearly defined brand strategy ? How will we integrate social media with other brand/marketing stratgies ?

Start with gaining audience intelligence….

how much do you know about your audience ? what can your current data tell …

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