Not sure how to set your marketing budget? A great rule of thumb is investing 8-10% of gross turnover on Marketing Activities to grow your business. That includes spend on all of your marketing across Owned, Earned and Bought media including website, brochures, signage, social media, Adwords, SEO, advertising, branded content, P.R., marketing events, and sponsorships. In most cases it also needs to cover marketing expertise & any creative development.
By allocating a fixed proportion of your turnover (or forecast turnover) to marketing, you’ll set yourself up for success in driving future growth as well as managing the day to day needs of your business.
Why invest in marketing at all? Marketing is essential in:
- Expanding your customer base & reaching new consumers;
- Creating loyalty amongst existing customers to keep them coming back, trading them up to buy more frequently or spending more per occasion;
- Standing out from your competitors – it’s not enough to have a great product, or a new or different offering, in order to be successful you have to tell people about it!
- Encouraging customers and clients to become brand ambassadors, by fostering reviews, recommendations and goodwill.
Don’t just take it from me, as Marketing Guru Seth Godin has said “If you are marketing from a fairly static annual budget, you’re viewing marketing as an expense. Good marketers realise that it is an investment.”
Having a strong brand is a huge competitive advantage – a recognisable brand with a strong reputation translates to higher sales, more effective advertising spend, increased word of mouth, the potential to increase margins by charging a premium & improved negotiating power for your business. Don’t just put all of your spend into Facebook Ads and hope for the best – working with an expert who can develop & implement a targeted marketing strategy tailored to your business will maximise your ROI so that every dollar works harder.
Investing consistently in Marketing is essential for success… it will not only drive short term sales, but it will build your brand, setting you up for success via sustainable, profitable business growth over time.
