How expensive is a good marketing strategy?
How much money should you be spending in order to get your marketing strategy right?
This is a question that many first-time entrepreneurs, and even experienced company managers, might be asking themselves. This guide should help you to understand how much to spend to make it work.
What’s your target?
The first question that you need to ask yourself is what your target is. Every good marketing strategy needs a target, and if you don’t have one, you will fail to achieve anything. Your target might be raising awareness in a small local market, gaining a certain percentage increase in sales, adding more names to your mailing list, or getting more followers on Instagram. Whatever it might be, make sure that you take the time to think about it and note it down. Generally speaking, the bigger your target, the more money you’ll need to spend. Finding 10 new followers in a day might be a lot easier than finding 10,000 new followers over a week.
How experienced is your marketing manager?
Does your marketing manager know all the ins and outs of advertising, content marketing, SEO, social media, and so on? Are they up to date with the latest changes? Do you even have a marketing manager? Sad to say, the less expertise the person in charge of marketing has, the more expensive it will be to reach your target. If you don’t know what you are doing, make sure you educate yourself as much as possible before you start. The more you understand about marketing, the easier it will be to hit those goals. If you haven’t done any kind of testing before, you may make mistakes at first.
What’s your budget?
You may have heard the saying that any task will expand to fill the time you have allotted to it. The same is true when it comes to marketing budgets: the cost will expand to use up as much budget as you have. If you currently only have a small budget, it might be a good idea to earn some extra money. You can easily raise funds by renting out your spare office space through a community sharing site. You can even rent out spare rooms in your home or your garage if you need to get the funds quickly!
How much return do you need?
When thinking about marketing, it’s important to consider what kind of return you are looking to make. In some cases, you might be looking to just boost your audience, ahead of a sales drive in the future. That’s fine, but in other cases, you might be looking to get a significant ROI. If that’s so, consider the fact that a small marketing budget is likely to result in smaller returns. When used wisely, a larger budget could multiply your returns by a large amount. But it’s important not to just throw money at your budget and hope that it will work. You have to have a clear plan for how the extra funding will help you directly to make more sales.
When it comes to it, we can’t say what your marketing strategy should cost, as the figure will be different for everyone. It’s a delicate balance between what you need and what you are able to spend, as well as leaving some extra budget for the fact that this may be a learning curve for you. When you put all of this together, you should get a clear idea of how much you need to spend to make your marketing strategy work.