How To Set A Marketing Budget For Your Business [Infographic]

So many businesses are blinded when it comes to the idea of allocating an actual budget for their market plan. Without an expert on board, it can seem like an overwhelming task. The best place to start is to truly understand WHAT a marketing budget is. A marketing budget is an estimate of projected costs to market and promote your business and its products or services. Your marketing budget is the foundation on which your marketing plan is built. Once you know how much money to allocate toward marketing, you can put together a plan to get the most return from your marketing dollars. Let’s step back and not look at it as “how much money am I going to spend?”, but view it as: “what is going to be the return on the money I’ve allocated to spend?” We've created this infographic to teach businesses how to create a marketing budget with percent of revenue recommendations, goal-based budgeting and step-by-step guidance on calculating ROI. Percent of revenue budgeting is one of the easiest plans to start with. Some don’t know their current marketing goals and would like an easy to follow recommendation on what they should be budgeting for. In all aspects of business, there are low and aggressive approaches. More established companies (in business longer than 5 years) may consider a budget closer to the “low” percentage, while more aggressive or newer companies may consider a budget closer to the “aggressive” percentage. We’ve narrowed businesses down to 8 different categories: Ecommerce, Service Businesses, Restaurants, Construction, Info Products, Start-Ups, Local Other and Manufacturers. These percentages are our recommendations extensive research done on budgeting for your marketing plans. Goal-based budgeting is another popular approach. The main question to ask yourself when using a goal-based approach, is “how much additional revenue do we want to generate from our marketing efforts?” Based on prior experience and previous ROI, you can arrive at an anticipated marketing budget required to hit your revenue goals. We’ve broken down ROI as a calculation that illustrates what you gained as a result of what you invested. We’ll teach you how to use our ROI Ratio Hack. This simple formula starts with the desired gross profit and ROI ratio to arrive at an estimated marketing budget in two simple steps. The goal of this infographic is to give our readers a simple step-by-step guide on setting up and truly understanding their business’s marketing budget. https://www.visigility.com/marketing-budget-infographic/ Read less