Marketing Budgets 101

Marketing Budgets 101

Marketing Budgets 101
You only have a​ limited amount of​ money you​ can spend on​ marketing a​ given product,​ service,​ or​ event .​
The way this money is​ divided up and spent is​ what is​ known as​ a​ budget .​

To determine a​ marketing budget,​ the​ first step is​ to​ determine how much money you​ can afford to​ spend to​ advertise the​ given product,​ service,​ or​ event .​
There is​ no magic formula for coming up with this amount .​
a​ well-established business may be able to​ spend millions of​ dollars marketing a​ product (such as​ Coca Cola or​ iPods),​ but a​ new business may only have a​ few thousand (if not a​ few hundred) dollars to​ spare .​
Each industry has different advertising trends .​
Some industries rely more heavily on​ print,​ others more on​ television,​ and others more on​ the​ Internet .​
By gaining knowledge of​ the​ industry that your business is​ in,​ you​ will also gain a​ better idea of​ how best to​ effectively position yourself within that industry and what media to​ use to​ do so.
A budget explains not only how much money will be spent but also how the​ money will be spent .​
As a​ result,​ a​ marketing budget is​ generally broken down into the​ ad spend for each of​ the​ different mediums that will be used in​ the​ campaign .​
For example,​ a​ mock sketch budget might look like the​ budget below:
Media : Cost
Print : $150
Internet : $50
Promotional Items : $500
Total : $700
In detail,​ the​ budget will more specifically dictate which ads the​ money will be spent on,​ when they will run,​ and how much each will cost .​
It is​ important to​ remember that budgets are fluid .​
Sometimes you​ can predict your ad spend perfectly .​
Other times costs may be more or​ less than what you​ expected .​
Always leave some wiggle room in​ a​ budget so that if​ an​ opportunity arises that you​ did not foresee,​ you​ are still able to​ take it.

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