The document provides guidelines for building a marketing budget, including eight essential rules such as defining marketing goals, determining an annual budget (5%-8% of gross sales), and considering various marketing channels. Additionally, it emphasizes the importance of measuring customer acquisition costs and the need for patience and consistency in marketing efforts. A shareable budget template is also included for practical use.

1. Building a Marketing Budget
Ellen Fruchtman, Angie Ash, Shane O’Neill

2. https://bit.ly/2BYPmDx
Once you access the document, go to File and select
Download as Excel. Then save to your laptop desktop.
Building a Marketing Budget
Shareable Link to Budget Template:

3. Every great budget begins with a few simple rules.
RULE #1: Define your marketing goals
On paper or on your laptop, right now, write down
your top 4-5 marketing goals.
Building a Marketing Budget

4. RULE #2: Determine your annual budget
General rule of thumb: 5% - 8% of gross sales
Building a Marketing Budget

5. RULE #3: Review your monthly sales numbers
Building a Marketing Budget

6. Building a Marketing Budget
Take the :30 Budget Test

7. 4-6 points: 5%
7-9 points: 6%
10+ points: 7-8%
Building a Marketing Budget
What Should Your Budget Be?

8. RULE #4: Consider your marketing channel options
Building a Marketing Budget
Facebook
Digital Display
Retargeting
Google
Adwords
Cable
Network TV
Satellite Radio
Terrestrial Radio
Billboards
Print
Publications
Billboards
Direct
Mail
YouTube

9. RULE #5: Consider what you’ve been doing
Building a Marketing Budget

10. RULE #6: Acquisition and Retention
Building a Marketing Budget

11. Acquisition Items:
Diversify. See your customers out where you may not have
previously looked.
TV Paid Search/Google Adwords
Billboard
Radio Facebook/Social Advertising Print
Events Digital (display/geofencing, etc) Word-of-
mouth
Sponsorships
Building a Marketing Budget

12. Retention Items:
Diversify. See your customers out where you may not have
previously looked.
TV Paid Search/Google Adwords Billboard Direct Mail
Radio Facebook/Social Advertising Print Loyalty Program
Events Digital (display/geofencing, etc) Word-of-mouth
Sponsorships Email Marketing
Building a Marketing Budget

13. ALLOCATE THE DOLLARS
Building a Marketing Budget

14. RULE #7: Measure. Measure. Measure.
Customer Aquisition Costs
Cost of Marketing : # New Customers
Example: Spend $5,000 on an event that attracted 500 customers.
Your CAC is $10*
*Have to account for everything that went into that event such as overhead. This is merely
your acquisition cost.
You have to measure all marketing as it relates to sales and GP!
Building a Marketing Budget

15. RULE #8: Remember, marketing is not an exact science.
It requires:
Patience
Consistency of Message
Trial and Error
Planning
Building a Marketing Budget

16. Thank you!
suits@fruchtman.com
Building a Marketing Budget
Q & A