Marketing and budget planning: The 5 steps to success
Determining the right marketing budget can turn out to be a challenge, especially in decentralized companies. While the literature recommends providing at least 3 to 5 percent of total marketing revenue per year, there are industry-specific discrepancies with this advice. However, since it is particularly difficult for individuals and local partners to set themselves a budget plan, guidelines and guidelines of the central marketing department can be used as an aid.
Everything starts with a plan
This should now be aware of what percentage of sales they would like to provide annually for marketing activities. After this calculation and the deduction of the resulting personnel costs results in the annual marketing budget, with which the measures and the marketing plan can be created below. Since the calculation of the budget is not sufficient to create a successful marketing plan, we have defined 5 steps in which the resources should be meaningfully distributed and the plan should be structured.
1. Defining priorities and goals
First of all, it is important to have a clear goal in mind to prevent money from being spent on spontaneous actions without being effective. These major marketing goals may include, for example, image enhancement or new customer acquisition. To achieve these goals, the year is divided into different marketing priorities, which are to achieve the individual goals.
2. Appropriate measures and instruments
As a result, individual measures are defined and carefully selected. With the goals set before, it should not be too difficult to find out which instruments are the right one. For example, for a young target group, predominantly online measures and social media campaigns may be promising, in line with the advertising focus, while for other emphases a large poster campaign would be more targeted. For the support of the local partners, they can also resort directly to the marketing consultants of the marketing center.
3. Scope and prioritization
In addition to the definition of priorities should also take place a prioritization. This means that it is decided which advertising measures more value is placed and which goals are in the foreground. This should help to distribute and weight the budget depending on the target. In addition, it is thus possible to determine to what extent and with what frequency individual measures should be taken.
4. Distribute budget
If the individual measures are focused on the advertising priorities and the priority is clear, all that remains to be done is to calculate what costs will be incurred. It is important to bear in mind that, in addition to production, there may be additional costs for the design, distribution or travel expenses (for example at a trade fair). In addition, you should always put aside a certain "budget buffer" for unpredictable costs.
5. Match with the total budget
Ultimately, all that remains is the comparison with the initial budget, which includes all the costs calculated for the individual priorities. If a deviation is detected, measures have to be deleted or extended in retrospect in order not to exceed the budget.
Subsequent: Success measurement for the next planning
After the first phase and the implementation of the plan, it is important to evaluate the marketing measures and measure the success. Because only successful advertising aids help achieve the goals. This avoids the adoption of measures in the next year that will not provide any discernible benefits.
To make such a marketing and budget plan available to local partners as well, the Local Brand X Marketing Portal offers a Marketing Planner module, which can be used to make recommendations for each advertising focus and campaign, and to provide them with a recommended budget.