9 Ways to Set Your Marketing Budget

9 Ways To Set Your

Marketing Budget

Determining the Right Amount

There are many ways to set a marketing budget.

Determining the Right Amount

There are many ways to set a marketing budget.

But it can be very overwhelming to choose the right

amount.

Determining the Right Amount

Most budgeting strategies require some trial and error.

Determining the Right Amount

There is no one “correct” budgeting strategy.

Determining the Right Amount

There is no one “correct” budgeting strategy.

Here are

to consider.

9 Marketing Budget Strategies

Budgeting Option #1

Use a percentage of your revenue.

Budgeting Option #1

Use a percentage of your revenue.

Most startups and small businesses allocate 2-3% of

revenue to marketing.

Budgeting Option #1

Use a percentage of your revenue.

It is not uncommon for larger companies or those in competitive industries to allocate

10-15%.

Most startups and small businesses allocate 2-3% of

revenue to marketing.

Budgeting Option #2

Use a percentage of your net sales.

Budgeting Option #2

Use a percentage of your net sales.

Similar to using a percentage of revenue, but you are deducting returns, discounts, and

allowances.

Budgeting Option #3

Budgeting based on your competitors’ marketing expenditures.

Budgeting Option #3

Budgeting based on your competitors’ marketing expenditures.

Figure out how much your competitors are spending on

marketing, then budget slightly more to increase revenue

accordingly.

Budgeting Option #4

Use anything and everything you can afford.

Budgeting Option #4

Use anything and everything you can afford.

This aggressive strategy is very risky, and can either work to your advantage or fail miserably.

Budgeting Option #4

Use anything and everything you can afford.

This aggressive strategy is very risky, and can either work to your advantage or fail miserably.

Use with extreme caution.

Budgeting Option #5

Budgeting based on desired customer growth.

Budgeting Option #5

Budgeting based on desired customer growth.

Your marketing budget will be determined by annual customer target numbers.

Budgeting Option #5

Budgeting based on desired customer growth.

Your marketing budget will be determined by annual customer target numbers.

Ideal # of customers

Cost to acquire 1 customer

x =

$$

Budgeting Option #6

Marketing for free.

Budgeting Option #6

Marketing for free.

If you don’t have any marketing funds, consider guerilla

marketing tactics like word-of-mouth.

Budgeting Option #6

Marketing for free.

If you don’t have any marketing funds, consider guerilla

marketing tactics like word-of-mouth.

This can be very time consuming, so marketing for free may not be a wise

choice.

Budgeting Option #7

Get professional advice from an industry source.

Budgeting Option #7

Get professional advice from an industry source.

Industry insiders can accurately project how

much to spend on a successful marketing

campaign.

Budgeting Option #7

Get professional advice from an industry source.

However, this number is often unattainable for small business owners.

Budgeting Option #8

Budgeting based on corporate objectives.

Budgeting Option #8

Budgeting based on corporate objectives.

This is a great way to market because it’s

tailored to your needs.

Budgeting Option #8

Budgeting based on corporate objectives.

Create a marketing plan that maps out exactly how much you will spend on

each tactic.

Budgeting Option #8

Budgeting based on corporate objectives.

Create a marketing plan that maps out exactly how much you will spend on

each tactic.

If possible, consult a professional to help

tailor your ideas.

Budgeting Option #9

Budgeting based on preferred market share.

Budgeting Option #9

Budgeting based on preferred market share.

Use this tactic if your goal is to attain a specific percentage of your particular market.

Budgeting Option #9

Budgeting based on preferred market share.

1. You will first have to calculate the total marketing spend for every business in your market.

1. Then figure out where you stand and how much to spend.

Want to Learn More?

Download our white paper “Setting Your

Marketing Budget” at:

bit.ly/JeuAlL

For more information, visit

www.ClarityQst.com

or call

(877) 887-7611