How to set your marketing budget accurately

There are a few ways to determine what your marketing budget should be.The effectiveness of these will be determined by the type of business and the desired outcomes of marketing.

If you are a new business owner it is a good idea to start your budget with all the money you can afford.This amount, even if it is small, will give you a start in a positive direction.

Another way to go about deciding a marketing budget is a percentage of your sales.This works great for an established company that can look back over records and see how effective their budgets have been in the past.

One more way that you could look at your budget is simply by matching the competition.Be sure that you are not being out done by keeping up with your competitors.All of these ways will give you a good place to start.

There are many factors to keep in mind that will also help in determining your budget.Here are some things to think about when doing your planning.

- You have to spend money to make money, it has been said before.If you feel like you have made the smallest budget, it may not be an effective budget.Marketing is not the best place to be cutting corners.
- If you are a new company or you just have a new product, there needs to be more advertising.When there is something new it requires extra attention in the marketing department.Add a little bit more to your budget to start your new product off right.
- Put your dollars where you get the best results.This will vary from company to company.There are many different ways to advertise, trial and error may be the way to find the best.Another idea is looking at a competitor, how are they advertising?They may have already endured the pains of trial and error!
- With a new product you will need more money initially.But remember that that product will only be new for part of your budgeting term.So you need to calculate how to taper off marketing for that product, and possibly factor in a new one.
- When you are working on your budget you should coincidentally be working on your whole marketing plan.They are so co-dependent that to finalize one without having the other in the works is going to end tragically.Let them work together and maximize each other.

There are two ways to advertise and both need to be budgeted for, just another spoonful of food for thought.

Product Advertising

This consists of well, advertising your product.It may be the launching of a new product or service, or it could be remind consumers what you have to offer.This will differ throughout the year as well.Christmas is usually a huge time for toys and gifts, tax time requires more ads at the beginning of the year.Depending on the time span your budget covers these things will have to be kept in mind.

Promotional Advertising

Product advertising brings consumers in for a specific product, but promotional ads bring them in because of a special deal.These ads would be coupons, specials, or one time offers.They are great for getting the focus on the company name instead of just a product.

They can be effectively done together if that will work for your business.Just remember to keep your name out in the public.Don't let your consumers forget about you because of a bad budget.