1. A GUIDE TO SETTING THE
RIGHT MARKETING BUDGET
The old adage is true. You have to spend money to make money.
If nothing changes, nothing changes!
Effective marketing is ensuring that you invest in the right resources to create
and then execute the right plan.
HOW TO CALCULATE YOUR
MARKETING BUDGET
THE TURNOVER MODEL
Many businesses use a ʻpercentage
of turnoverʼ model.
10% is regularly used as the rule
of thumb, often higher for new
businesses or brands seeking
aggressive growth.
This method is popular because it is
easy. It is also arbitrary and has
several limitations.
In more competitive industries you will need to spend
more per customer to stand out amongst competitors.
How competitive is my industry?
HOW TO MAKE THE MOST OF YOUR BUDGET
Weʼre here to help.
How well known is my business?
What are my objectives?
What do I need to achieve my objectives?
What level of risk am I willing to accept?
New businesses will need to spend more than
well-established businesses in driving awareness.
The more aggressive your growth objectives are, the
more you require to achieve them.
Be realistic in understanding what you need to do
and how much it will cost.
Good marketing minimises risk through considered
planning, robust measurement and constant evolution.
WHAT EVERY BUSINESS SHOULD INVEST IN
The 5 ʻmustsʼ to maximise marketing effectiveness
1
Get your offer right
Know your audience and ensure
your offering meets their needs.
2
3
4
5
Get your branding and message right
Create a strong first impression.
Ensure that you are easy to find
Be where your audience is and
invest in a website that is
responsive to any device and
optimised for search.
Invest in a strategic marketing plan
Make sure you donʼt waste
money on poor marketing
messages and tactics.
Without a plan businesses take
a haphazad approach and end
up doing long term damage to
their brand.
Stop thinking, start doing!
Execute what you say you will and
measure the results.
$5K
$50K +$20-50K
$10K
Make an effort to understand your audience to
make your investments go further
Self-educate to save money (e-books, seminars)
Invest in a template-design website
Get help from the experts to ensure your
branding and identity is right
Invest in a template-design website and ongoing
search optimisation
Create a basic marketing plan focused on
low cost marketing tactics
Invest in a full strategic marketing plan and
branding
Outsource your marketing to implement smart
and robust marketing tools.
Invest in a custom-design website and ongoing
search optimisaton
Undertake mild market research to enhance your
market impact
Invest in a full strategic marketing plan and
branding
Outsource your marketing to implement smart
and robust marketing tools and campaigns
Invest in a custom-design website and ongoing
search optimisaton
Undertake market research to enhance your
market impact.
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