For the sake of marketing, every business has to attract customers to increase sales and compete better. But there are several business owners which are still confused about how much money they should spend on marketing.
Whereas, it is difficult to know what exact amount should be spent on marketing because the amount may vary due to the industry, competition, location, and all that. Agencies and marketing experts usually suggest that small businesses must spend 7 to 8 percent of their income on marketing.
Why marketing is important
Whenever any agency calls or sends you an email it means they are trying to sell you their services. It usually looks like agencies are trying to push another unnecessary cost on you. But the fact marketing is worthy for your business. If you are not spending on any form of digital marketing you are going to have a big loss of falling behind the competition.
Here are some tips for a marketing budget that can fit your small business.
Start by researching your industry:
Your marketing budget must be an appropriate percentage of your income. A simple rule of thumb is that the B2B companies should have to spend 2 to 5 percent of their incomes on marketing. B2C companies, usually spend a higher amount on marketing such as about 5 and 10 percent of their income. Because B2C companies want to attract their customer to increase sales so that’s why they invest more in marketing. Researching is a good way to narrowing your target budget Therefore, it’s important to know how much other companies and competitors are spending on marketing.
Set clear goals:
First, you must have to set a clear goal for your marketing. The goals must be specific and measurable. Setting up the goals will empower you to decide what needs to be done. And what amount of investment you will be needed. Therefore, you should know all these questions discuss below.
- Do you want more people to visit your website and get influenced to take a specific action? If so, how many people over what period of time?
- Do you want that people visit your store for a free sample or consultation?
- What kind of customers would you most like to attract?
- How many of them do you want to come in?
Consider all your potential costs
As with other business expenses, marketing has also various components. But you should understand which component will be most effective for a specific period then you can adjust the amount also. Keep all important components in your mind on which you have to invest such as website, social media, online advertising, traditional media, E-newsletters, videos, and training.