How Much Should I Spend On Marketing?11 October, 2018
Thinking about a marketing strategy in terms of how much it’s going to cost can limit your approach; but if you think of it as an investment where spend is balanced by return, you can commit to developing a framework that opens up a proper exploration of your marketing options. But, before you ask “how much should I spend on marketing first,” you must first answer some basic questions about what you want to achieve, and how you want to go about it.
The True Cost of Marketing And It’s ROI
In the first place, an investment in marketing is always a wise one – on average, firms that spend more on marketing are more profitable than firms that don't. But, there is more to marketing than just cost - you must consider the time and effort it takes to make your campaigns successful. So the first question on your list is: how much time and money can you afford? And what do you expect to get back?
Depending on your business and its location, the return on investment may not be immediate – and it’s likely to start off small before it gets bigger. One way to tackle it is to spend time planning well and commit to a larger spend at the beginning, before reducing to an ongoing awareness campaign when the work of getting your business noticed has established your market presence.
How Much Should You Invest In Marketing?
Current wisdom recommends that a starting point for marketing spend should be between 5 and 10% of your turnover. If you’ve got the resources, the more cash you put in, the broader your reach – and therefore the larger the impact. But before you thrust your eager hand into the company wallet, hold off a minute – because there’s more to marketing strategy than throwing money at it.
What Do You Want Your Strategy To Achieve?
Before you go looking for marketing expertise, spend time thinking through what you want your strategy to achieve. Here are a few key considerations:
- A scattershot approach is rarely successful as an opening gambit, so don’t aim your marketing guns at everyone. Narrow down your target market - don't waste money on people who aren't interested in your product
- Study your location – your business’s catchment area, the local population, and assess the realistic prospects of widening your reach
- Factor in the competition – what are they up to? What have you got that they haven’t? Is their presence stronger than yours?
- How’s your reputation? How strong is your identity? Have people heard of your business? Do they know what you’re selling?
Consider Credentials To Avoid Unnecessary Marketing Cost
Finally, commit to employing professionals – working with well-meaning individuals outwith the marketing industry only wastes valuable time and money. While the most expensive option may not be the best, don’t be automatically tempted to go for the cheapest option – it’s more important to find an agency that has an approach you can work with – and respects your budget. The right approach has the potential to create an imaginative strategy in synergy with your product, your market and your aspirations for the future – and make a lasting contribution to business development and growth.
How Dynam Tailors Our Services To Your Budget
Dynam has plenty of experience in creating marketing strategies for a wide range of clients. Whatever the size or sector of your business, whether you’re operating in the public or private sphere – and whatever the available budget, our expertise can help you carve out a niche and make your presence felt. Don’t feel you have to go for the maximum figure you can afford – Dynam is skilled at making sure you get maximum value for whatever you spend!
If the idea of a marketing strategy for your business is sounding more attractive by the minute – and why wouldn’t it? – then a Dynam Clear Thinking workshop could be just what you need to start the process! Reach us online or by emailing us at firstname.lastname@example.org.