Marketing is important for business growth and profitability. However, some small business owners lack experience in preparing and implementing a suitable budget for it. Money to be spent on digital marketing has to be well-planned.
For small businesses, it is an aspect that needs careful planning to avoid mismanagement or inadequacies. They are not well-established, and it would be a shame if the marketing campaign turned out to be wasteful and ineffective.
What you need is a guide. Follow these 5 steps when developing a marketing budget for your startup or small business.
1. Know Your Customers
Every information about your target audience is crucial in knowing how to reach them. The criteria include age, income level, location, and preferences. Such information can be obtained from online sources. Getting to know your target audience will help you formulate marketing strategies, and have an idea of how much should be allocated.
2. Revenue Should Determine the Budget
Your budget should be in line with the revenue generated from the business. Set a reasonable percentage to be deducted from your earnings. Other factors to be considered would be your business capacity, sustainable growth, etc.
3. Have a Spending Plan
In order to implement your budget wisely, you need to plan on how to spend with a good schedule. Have business plan writers handle this during the strategic planning phase. Research the costs to be incurred in your marketing campaign up to when you can finally attain the set goals.
Social media marketing is a very good low-budget option. You can try parting with a few dollars to activate paid ads on sites like Facebook and Twitter, then measuring the campaign’s effectiveness. If the outcome is good, you can decide to spend more.
You can also consider utilizing free services before paying for their exclusive features. There are free online services such as Hootsuite and MailChimp. Access to their premium services can only be granted when you pay a stipulated amount.
Look for discount options when learning about digital marketing services. Saving opportunities may be based on the number of services, or the period you are willing to pay for up front.
4. Revise the Results
Make your plan flexible for the purpose of changing a course of actions or altering a schedule. You can monitor the performance of a strategy, and decide whether or not to switch to another. The addition of more strategies can boost the effectiveness of your campaign.
5. Monitor the Moves of Competitors
Apart from revising the results of your strategies regularly, you need to measure the effectiveness of your competitors’ digital marketing strategies. If they perform well, you can decide to adopt the strategies. If not, steer clear.
Having researched all the digital marketing channels and weighed your options, you can have an estimate of the spendable amount. Of course, you cannot use up all the money. You can also spending more than your budget. Note that costs can be recurring or fixed. Monthly subscriptions are good examples of recurring costs.