Allocating your marketing budget can be one of the trickiest plans to put into place. After all, you want to get maximum ROI on your investment and figuring out how to spend your money effectively takes some time and effort to make sure you are throwing good money away.
Any business owner will benefit from marketing plans and strategies because they will find it easier to close sales. When you market to your ideal consumer in a more targeted manner, you may lower your marketing expenditures while increasing your chances of turning leads into purchases. When you ask what problem you solve and why clients should choose you, you may better identify the challenges that someone ready to buy is experiencing.
A marketing budget helps you to keep track of your expenditures and revenues at a glance. It also allows you to see where you will be able to cut back on unneeded expenses. Proper tracking can enable you to effectively allocate your budget and adjust your forecast and plans accordingly.
Developing a Marketing Plan
Whenever you're building a strategic marketing strategy, you want to connect with the consumer. A connection is made when the consumer understands that you have provided them with an answer to a question on their minds for some time.
It is more likely that consumers will purchase when they know their requirements, and a solution is given to them. If a person is unaware that they have a problem, it will take longer to educate them through understanding why they may require your assistance. Customers who do not see a necessity or an acute desire are less likely to purchase from you.
Planning An Effective Marketing Budget
You need to identify the objective of your marketing campaign. If you don't know what you want for your ads, you won't get the desired results. The purpose of your marketing campaign can dictate how and where your budget is spent and what marketing routes you opt for.
Use your sales funnel to help you break down your marketing budget and use all the data applicable to help you identify each stage and what deserves your money.
A typical sales funnel looks like this;
Does your business's funnel contain many people at the consideration stage but few at the decision stage? As a result, you may need to budget more for techniques that help move leads from contemplation to decision. Video marketing, PPC commercials, and social media ads may help you drive leads down the funnel.
How much does it cost to run your business? How many staff do you have, how much do materials/time cost to prepare orders and products? Once you know how much it costs, you can allocate the proper budget to the marketing campaign. you want to look at;
- Operational costs
- Costs for employing staff/outsourcing
- Costs for running your business (electricity, water)
All businesses have different goals, and you need to know yours. Do you want to sell products or raise awareness? What you desire and your company needs will determine the best form of marketing for your company and allow you to put your budget where it is needed instead of throwing money in the wind and hoping for the best.
When you do identify your goals, be as specific as possible. If you want more sales to be clear about how many deals you want to hit. Be it 20% more than last year or to double your trade. It could be you want to grow your social media channels and raise your brand reputation and hit a specific number of followers. Whatever it is, give it a tangible target so you can push your marketing to hit this.
Know Your Market
To develop a successful marketing budget plan, you must first understand your place in the industry. When you know how you compare to your competitors, you may more effectively determine which methods you will need to employ to compete against them.
You'll want to conduct a competitor analysis to determine how well your competitors perform on the internet. It can assist you in deciding which methods you'll need to spend to achieve success in your business. Using competitor analysis tools can even help you in identifying areas where your competitors are currently succeeding online.
Identify Your Strategies
One of the most essential parts of creating your budget is deciding what route you want to take. Digital marketing can offer you different methods to get the results you need, so you need to identify what avenue will give you the results you want.
Some practical options include;
- SEO – Search Engine Optimization is the process of boosting your website ranking in search results pages. The higher you appear, the more traffic you can drive to your site.
- PPC – PPC ads are ads that appear at the top of the search results pages. You pay to boost your visibility and reach more people easier than relying on SEO alone.
- Social Media Marketing – This strategy involves connecting with people via social media and using your posts to advertise your company.
- Social Media Advertising – the same as above, but you pay the platform to advertise your carefully crafted copy and posts in the feeds of your targeted audience.
- Email Marketing – A great way to nurture leads and boost conversions by sending promotional emails, deals, abandoned cart reminders and more.
- Content Marketing – This is done via placing content on different websites with links to drive traffic to your site. Content includes videos, blog posts and more to share knowledge and vital information.
Outsource or In-House
Once you have your marketing plan in place and you have allocated your budget, you can look at whether you are planning to take care of your marketing in-house or if you prefer to outsource your marketing to an experienced team who can overlook all of the small details and provide you with tangible results – learn more here about how outsourcing marketing can be hugely beneficial to your company.