What is a marketing budget?
It is always a good idea to create a marketing strategy and this includes a marketing budget. Marketing plan templates can look different but typically include the following.
Content of a marketing plan - example:
- The products and services to be marketed
- The specific target groups to which the products and services are to be marketed
- The sales channels the products and services must be marketed on
- The way marketing through the sales channels should be carried out
- A budget for the above
- A timetable for the above
As you can see, the above will get out of hand if a budget is not set.
So the budget helps:
- How much should/can be set aside for marketing
- Spread the amount over the whole time period
- Distribute the amount to different activities
It would be pointless for you to spend more money on marketing than your company can afford. Or if your employees have already spent all the money allocated in the middle of the period and there is now no more money left to advertise and promote your company and its products.
Therefore, a marketing plan super important to include in the planning of a company's marketing activities.
Example of marketing budget
In your marketing budget, you should include all the costs you can imagine having for your marketing activities.
For example, this could be the cost of:
- And marketing agency
- Marketing tools
- Online marketing-activities
- Offline marketing activities
For example, would you like to advertise via Google Adsthen your estimated costs should be included in your marketing budget.
However, this does not mean that your budget is locked, that changes cannot be made along the way. Especially for a startup that needs to try out various advertising options, it can be very difficult to estimate a specific amount for Facebook, since the company does not yet know if it works.
It can also happen for a larger company where customers change behaviour or the company experiments in new areas, for example using growth hacking.