marketing budget

[CR0X]

someone asked me an interesting question today, what is our marketing budget.

In truth, I don't know, but it got me wondering. What do we set aside for marketing? We buy and sell goods, so we don't make huge margins, as we are not manufacturers.

So a question, what percentage of net profit (for argument sake) does everyone set aside for marketing?

[Broccers]

Should be an ongoing cost if you want to grow your business. Doing nothing doesn't work, usually.

[CR0X]

Broccers said:

Should be an ongoing cost if you want to grow your business. Doing nothing doesn't work, usually.

absolutely. We normally spend what we need to in the circumstances, but do not have a budget per se. It was more of getting a feel of what other businesses allow for?

[Simpo Two]

I would say spend what you need to get the job done - as long as it doesn't outweigh the estimated returns.

But then I have never set a budget for anything

[Frimley111R]

How much are you spending now on getting new customers? That's essentially your marketing budget.

[technodup]

Broccers said:

Should be an ongoing cost investment if you want to grow your business.

Most marketing people would recommend around 7% of revenue. I'd say 20% just to be safe. And to help me into an Aston.

[JustinP1]

CR0X said:

someone asked me an interesting question today, what is our marketing budget.

Was it someone who wanted you to advertise by any chance?

Serious question.

[Hoofy]

Investment, indeed.

Marketing spend should be measured in terms of ROI. And so should the type of activity. All depends on the business. Sometimes cold calling makes sense. Sometimes leaflets make sense. Depends on the product/service and business.

In the ideal world, you spend £1 and make £10 but it doesn't always work like that. You try a new magazine, spend £1000, make £5. Best not advertise in that magazine again. Assuming the ad has worked in other magazines.

[Undirection]

Hoofy said:

Investment, indeed.

Marketing spend should be measured in terms of ROI. And so should the type of activity. All depends on the business.

Agree but also on expansion/growth plans.

[Hoofy]

Undirection said:

Agree but also on expansion/growth plans.

True. I didn't mean that you should spaff your entire bank on marketing so you can't afford to make the product.