When it comes to growing your business, do you have a “build it and they will come” mentality? In order to scale your business and grow it the way you intend to, you must set out with a marketing plan and determine a marketing budget to execute your strategy efficiently. However, different factors will determine your marketing budget. The percentages that work for other businesses may not be the best fit for your marketing strategy. In this article, you will discover 5 of the factors that you should consider if you want to have the most effective marketing budget plan for your small business.
The Company’s Goals and Audience
First, you need to consider what your company’s vision is. Remembering the main purpose of starting your business can greatly aid in planning the marketing budget. For example, are you a clothing store that focuses on fashion for plus-sized women? Or a childcare business providing affordable childcare for low to middle-class citizens? With a defined goal for your company and a clear understanding of your audience, you can better target your audience with the right marketing avenue that will provide the greatest return on investment.
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The second factor that will influence a small business marketing budget is the specifics of the industry your business belongs to. Does your business belong to a niche industry with big customers (like corporate clients), or does it target everyday businesses, such as a pet shop? Each of these industries have specifications which largely affect the style and spend of their marketing plan. The recognition that you already have in your industry will guide the marketing plan best fit for you and therefore guide the marketing budget. While this is only one high level example, when creating your small business marketing budget be sure to account for the variables that are unique to your industry or niche.
Marketing Activities to Target
With so many marketing tactics that can be applied, knowing which is most effective for your business will influence how much of your budget should go into it. Some of these marketing activities include email marketing and lead nurturing, Google PPC and remarketing advertising, organic SEO, content and social marketing, trade shows and event marketing, and public relations. The more in depth information you know and the more you understand your audience, the better you can maximize this factor when creating your small business marketing budget.
Your branding strategy is another factor that affects the marketing budget. Branding is an critical aspect of your marketing that helps to define your business, create value, and establish credibility. With branding, you’ll likely invest in a logo, a website, business cards, videos, custom apps, and more. This will require a caliber of skill that should be. accounted for in your marketing budget. Branding costs will vary based on what your company needs at the moment, and can range from a few hundred to thousands of dollars.
Advertising is another factor that influences marketing budget. Advertising, just like branding, goes hand in hand with marketing. It involves finding the strategic places to introduce your product or service. A portion of your small business marketing budget will depend on the advertising channel(s) you use. Some of these include Google advertising, social media advertising, print media, direct mail, radio, TV ads, magazine and newspaper ads. Knowing which advertising media suits your business and reaches your ideal customer will involve setting a budget to test different media to determine the best performing channel, then streamlining marketing expenses to that channel.
In closing, these are only 5 of the factors to consider when creating your small business marketing budget. Other factors may need to be considered depending on your specific business.
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