Our Process For Determining A Market Budget Is Proven & Backed By StatsMost small business owners know the importance of digital marketing. However, many often have trouble getting off the runway due to a variety of reasons. Such reasons include a lack of product knowledge or failing to define attainable goals. Therefore, business owners who lack these understandings do not start running campaigns or abruptly stop marketing online. As you may know, digital marketing focuses on sustainable, long-term growth rather than short-term results. Therefore, you need to give your efforts time in order to produce results. Nevertheless, another reason many business owners do not start marketing online is that they never answer the question, “How much should I budget to market my small business?”.
Determining a marketing budget for a small businessThe rest of this article will give you the guidelines necessary to answer this question. However, I’ll tell you right now. Figuring out how much your small business should budget for marketing is easier than you’d think.
1. Understand the business that you’re inThe first step to determining a marketing budget is to understand the business that you’re in. By doing so, you can select the marketing products that you require in order to see results. Questions include:
- What products/services do you offer?
- What kind of marketing have you been doing so far, if any?
- If you haven’t been marketing your products, how could you see your products or services being marketed successfully?
- What is your industry’s landscape like?
- What do your competitors do for marketing?
- Have they been successful?
2. Understand your customersAfter you have an understanding of the competitive landscape of your business, you need to reflect on your customers. Questions to ask yourself include:
- What are my customers like?
- Where do my customers like to receive communication?
- How would they react to a certain form of marketing from my business?
3. Outline your goalsWith a better understanding of your customers, you can now outline your goals. Questions to ask yourself include:
- Which channels do I want to implement?
- To what extent, do I want to influence a purchasing decision through a certain channel?
- Do I want to generate traffic to my website?
- Based on how many customers I have per month right now, how many customers do I want?