Creating a Marketing Budget
By Jon Miles
Marketing Plan Success
There are four common methods for determining your marketing budget. The Marketing Plan Success templates use the first method, known as the percentage-of-sales method. This is by far the most common method for companies who set their budget based on their sales forecasts. Along with the percentage-of-sales method, this article will describe the affordable, competitive-parity, and objective-and-task methods.
Percentage-of-sales Method
The percentage-of-sales method allocates the marketing budget based on the forecasted sales or current sales. Marketing spending is allocated based on the revenue. When revenue goes up, the budget goes up. When revenue goes down, the budget goes down.
Affordable Method
The affordable method for determining a marketing budget is simple: spend what you can afford. If you can afford to spend $1000, spend $1000. If you can’t, you don’t.
Competitive-parity Method
When companies use the competitive-parity marketing budgeting method, they try to match their budgets to their competitors’ budgets by monitoring their competitors’ activities and researching estimates from trade sources.
Objective-and-task Method
The fourth method of budgeting your marketing is known as the objective-and-task method. With this method, the company will allocate its budget based on the objectives it sets. In order to use this method, a business needs to determine its marketing objectives, the tasks needed to accomplish these objectives, and the estimated costs associated with completing these tasks. The Marketing Plan Success templates can be easily modified to support this method.
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Finally, an easy way to develop a marketing budget is available! The Marketing Plan Success template is the simple solution for creating your marketing budget. It allows you to budget based on either the current year or previous year’s sales projections and categorize costs in multiple categories. The finished budget is included automatically in your marketing plan. Download the Marketing Plan Success Demo >>>
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