Planning and setting a marketing budget for your own company is not the easiest task. When this company also works with a variety of partners, who all manage and usually pay for their own local marketing, this task becomes even more complex. Nevertheless, as a brand and marketing center, you should not neglect this important planning step and support your partners in marketing and budget planning in the best possible way. In this article, you will find important tips and steps on how to set the general budget and communicate this ideally to local partners.
Why do you need a clear marketing budget?
A clearly defined marketing budget not only provides a guideline for your partners, but is also a very helpful tool for successful marketing. The marketing budget provides guidance for staying on track and setting the right priorities in local marketing. It helps you to achieve your marketing goals and also to be successful in the long term. That is why a correctly set marketing budget and the ideal use of it are always an investment in the growth of the company.
Set marketing budgets
In order to set the right budget, it is important to set clear goals at the beginning and to derive the planned marketing measures from them. Depending on the effort and costs of the individual measures, production costs, sales costs and the working time of employees, the required budget can be derived. In principle, however, the general marketing budget should not only be used to attract leads, but also to build greater reach, better trust and strong customer loyalty in order to be successful in the long term.
If no individual figures are known, a general guideline can also be used, depending on the sector. For companies and suppliers in the automotive sector, the average marketing budget is around 3%, in the service sector 8-10%, while for companies such as Red Bull, up to 30% of the sales volume is spent on marketing. However, if no industry values are known, the golden mean of around 10-15% of turnover is recommended.
Communicate marketing budgets
In collaboration with local partners, communication is a particularly important part of planning and setting the budget. Here, you must not only communicate the specified budget to your partners, but ideally also explain it and make it understandable. It is best to share not only the general marketing budget, but also the individual goals and how partners can contribute to achieving them with their local marketing. Only when the budget is adapted to the individual situation of the partner will the partner understand it and use and implement it for their own planning.
Anyone who sticks to the plan and regularly shares (high-quality) content will notice that the number of followers continues to grow over time. Over time, you build up a kind of relationship of trust with these followers, which would be hurt if there were simply no more posts from one day to the next and no explanation was provided. With the increased number of followers and thus also the reach, the company's potential turnover via social media is also increasing.