Lesson 1, Topic 1
In Progress

Marketing Financial Budget

Warning: Attempt to read property "post_author" on null in /home/palanfou/evarsity.my/wp-content/themes/buddyboss-theme/learndash/ld30/topic.php on line 196

Failure to properly cost and budget your marketing plan could lead to problems. While insufficient funding for such items as equipment or staffing may immediately come to mind when budgeting for the whole business, it’s the lack of a properly constructed marketing budget that dooms many marketing plans and campaigns. A marketing budget is the marketing plan written in terms of costs.

Summary of the Marketing Budget:

Marketing budgets ensure that your marketing plan or campaign is realistically costed. Somepre-budget research into your industry and market, your competitors and your business’s historical marketing metrics helps marketing managers make a more informed calculation. You should cost out all general marketing and marketing communications expenses. You could also work in conjunction with an accountant to make sure that the figures are completeand realistic.

Definition: Marketing Budget:

A Marketing Budget is Marketing Plan in terms of costs. Marketing Budget is an estimated amount of cost that will be required to promote products or services. Marketing Budget is generally part of a marketing plan and crucial part of the marketing process. It includes all promotional costs like advertising and public relations, employing staff, office costs and other expenses included for marketing. This budget is created to estimate the costs that are necessary for growing a business.

Most of the businesses have tough time in predicting promotional costs. Generally high budgets are kept when new products or services are launched in the market. Percentage method is used for predicting budget, i.e. budget is set according to percentage of sales or profit. It is critical resource for entire company because failure to properly estimating cost can lead to various problems.

Some statistics have stated that of the small to mid-size companies just operated on budget without any specific marketing plan. That’s why so many marketers are focused on tactically preparing marketing budget. Budgeting is a difficult process and many companies rely on their last years spend as a base in estimating the budget. Marketers also use ROI to prepare the appropriate budget.

Some research called advertising or marketing communications research is done prior estimating budget like-

· Industry and Market Research

· Competitor Analysis

· Marketing Audit

· Internal Marketing performance records