Setting Marketing and Advertising Budgets
Setting Marketing and Advertising Budgets
The question of affordability comes in the way of all business owners. Whenever we think of our business goals, our second thought is, “but can I afford it?” The only way to answer this question is to set a proper financial budget.
Budgeting helps steer clear of potential financial problems and allows us to allocate funds rightly. It lets us know where we stand financially and how much we can afford to invest in marketing and advertising.
Let us look at some essential steps for setting a marketing budget.
How to Set a Realistic Marketing Budget?
A marketing budget includes everything, from the costs of hiring professionals to the cost of purchasing effective marketing tools. Here is a step-by-step guide on setting a marketing and advertising budget for your business:
Step 1: Identify your business goals
Unless you know what you have to buy, will you know how much money to take with you to a grocery market? No, right? Similarly, you will never know how much to invest in marketing until you know your short- and long-term business goals. Therefore, to budget right, consider your immediate and ultimate business goals.
Step 2: Get to know your sales funnel
Every potential customer takes a journey from casually stumbling upon your advertisement to becoming your loyal customer. In the world of marketing, this journey is called the sales funnel. A sales funnel comprises four major stages: awareness, interest, decision, and action. First, you make your customers aware of your existence. Then, you pique their interest in the solution you provide. This is followed by their decision to invest in your services, after which comes the actual act of purchasing. If there are any loopholes in your sales funnel, you will have to identify and fix them. Your budget should cover the amount to rectify the identified problem.
Step 3: Pick your weapons
For an effective digital marketing strategy that stomps the competition, you will need the right marketing tools. Once you identify the tools you need to convert your potential customers, you will have to allocate funds for the same. The most common marketing tools that businesses spend on include pay-per-click or “PPC,” social media marketing, and email marketing. You can choose the tools that will help you attain your business goals.
Step 4: Decide who you want to work with
Deciding who you want to work with is another vital factor that will help you set a realistic budget. Choose if you are going to outsource or let your employees handle your marketing campaign. This will give you a fair idea of how much you will have to invest. If you choose to outsource, decide if you will hire a digital marketing agency or a freelance marketing expert.
Get in touch with Tommy House Studios today!
Call Tommy House Studios at (334) 310-2915 or contact us online today if you want to set a realistic marketing budget for your business in Montgomery, AL. We will work with you to work out a budget to help you stay focused and make the right business decisions.
