What is a Marketing Budget?
The world economy runs on consumerism. That is why companies are willing to spend a lot to get their products or services promoted. In 2019, it was estimated that global spending on advertisements amounts to 563 billion dollars. In the first half of 2020, spending on digital advertising is projected to reach 355 million dollars, according to Statista. The marketing budget is one of the things that companies pay attention and for good reason. Budgets project an estimated cost for operations like marketing. It is an integral part of business planning.
How to Prepare a Marketing Budget
Preparing budgets is essential for the planning and management of any business operations. It can seem complicated to someone unfamiliar with budgeting. We have prepared a few helpful tips to make a budget, feel free to check it out.
1. Have a Complete Idea About Marketing
Before you prepare a budget, it is advisable to set targets and goals. Of course, these goals must be achievable within a short time frame. You can easily set your goals and schedules if you have an adequate understanding of advertisements.
2. Know What You Need to Spend For
After setting your goals, identify the things that the marketing operation will need. Create a simple list and request a quotation from multiple advertising companies. Gather these quotations and select which is the most cost-effective among the choices.
3. Estimate the Amount of Money the Company are Willing to Spend
After gathering quotations, you should consult the staff involved in company finances and ask for an estimate of the company's funding for the marketing operation.
4. Allocate the Budget
Depending on the estimated amount, you can decide to go with the current price or look for an alternative. If the estimates agree with the current price, you can now put your budget into writing.
5. Prepare the Budget Document
After completing your preparations, what is left is creating the document for the marketing budget. Use a suitable computer application like Apple to make your work efficient.
How is a budget different from a forecast?
A budget is an integral part of business planning. It lays down planned spending to achieve business goals. A forecast lays down financial expectations. The key difference between the two is that budget is used in quantifying what is needed to achieve results. A forecast is an estimate of what could be achieved.
What are the benefits of preparing a budget?
- Allows safe and responsible spending
- Gets rid of financial risk
- Ensures that there is money you can spend in emergencies
- Keeps you aware of your savings and spending
- Enables you to see the bigger picture of your finances
What is marketing?
Marketing is the process of promoting your products or services with the aid of advertisements and printed promotional materials like posters and banners. It aims to increase public awareness of your products resulting in obtaining a large customer base.
What are the types of marketing?
- Cause marketing
- Relation marketing
- Scarcity marketing
- Undercover marketing