Let’s face it—most companies treat their marketing budget like a shot in the dark. They either throw money at the latest trend or skimp so much that their brand becomes invisible. Both approaches are recipes for disaster. Setting a marketing budget isn’t about guesswork; it’s about strategic allocation based on your business goals, industry standards, and market dynamics.
If you’re tired of the guesswork and want a marketing budget that drives real growth, get in touch. As a seasoned Fractional CMO, I can help you craft a strategy that aligns with your objectives and market realities.
Understand Your Industry’s Norms
First things first: know what’s standard in your industry. In the UK, consumer packaged goods companies allocate over 20% of their budgets to marketing
Statista. B2B companies typically spend between 2% and 5% of revenue on marketing, while B2C firms often allocate 5% to 10%. Start-ups aiming for rapid growth may need to invest between 12% and 15% to build brand awareness and customer base.
But don’t just follow the herd. Research your specific industry norms and understand what your competitors are spending. This gives you a benchmark but remember, differentiation is key.
Set Clear, Measurable Goals
Throwing money at marketing without clear objectives is like setting cash on fire. What are you aiming to achieve? More website traffic? Higher in-store visits? Attracting a new customer demographic? Your goals should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
Dive deep into your customer personas. What are their needs? How does your offering uniquely meet those needs? Tailor your campaigns to convert interest into sales. For a deeper understanding, explore frameworks like “See Think Do Care” to align strategies with different stages of the customer journey.
Allocate Across Channels Wisely
A well-rounded marketing strategy doesn’t put all its eggs in one basket. Consider all potential costs:
- Website: Beyond the initial setup, budget for ongoing hosting, content updates, and analytics to track visitor behavior and ROI.
- Social Media: Platforms like Facebook and LinkedIn are pivotal. Allocate funds for both organic engagement and paid advertising.
- Online Advertising: Tools like Google Ads require strategic investment, often starting around £1,000 per month.
- Traditional Media: Don’t overlook radio, print, and other traditional media, especially if they align with your target audience.
- E-Newsletters: Regular updates keep your business top-of-mind. Factor in content creation and distribution costs.
- Video Marketing: An increasingly vital tool, with costs ranging from professional production to DIY smartphone videos.
- Training: If you’re relying on in-house marketing, budget for ongoing training to keep your team’s skills sharp.
The key is to diversify while focusing on channels that deliver the best ROI for your specific audience.
Monitor, Measure, and Adjust
A set-it-and-forget-it approach doesn’t work in marketing. Regularly review your expenses against your goals. Use analytics to understand what’s working and what’s not. Be prepared to pivot based on data, not gut feelings. Quarterly and annual assessments will help align your spend with your marketing objectives and the evolving market landscape.
Ready to Get Strategic?
Setting a marketing budget that works is both an art and a science. It requires understanding your industry norms, setting clear goals, wisely allocating resources, and continuously monitoring performance. If this sounds overwhelming, you don’t have to go it alone.
Get in touch today, and let’s craft a marketing strategy that propels your business to greater heights. As a Fractional CMO, I bring the expertise and strategic insight to make your marketing budget work harder and smarter.
