Marketing is a huge effort within every organization and numbers play a great role in deciding its success and failure. Numbers, here, mean the actual budget allocated for marketing operations and the stats associated. Allocating and segregating marketing budget comes as the first and foremost step in marketing and is also one of the most important activities that have to be perfect for the smooth functioning of marketing operations.
Each marketing operation will have a certain effect and this effectiveness decides how much needs to be spent for that particular operation. Here are some tips to help you in devising and segregating marketing budget.
Be goal specific
Know your goals. Being specific on your goals lets you decide what needs to be done and how much money should go for a particular thing. It avoids getting distracted and lets you stay focused on only what is necessary. A social media campaign may look like an interesting campaign but if it is not going to help you raise your retail sales, you can conveniently defer it for some other time.
Use best practices and benchmarks in planning
Planning has to be done at all levels and for each little thing. This helps you avoid surprise expenses and shocking bills. You can follow the proven methods and best practices to for segregating marketing budget. Identify your current expenses and categorize them. Make sure everyone involved is informed of the budget proceedings. All the stakeholders must be given a chance to express their opinions. You can make use of brainstorming sessions and discussions to get new ideas and form the business model you need to follow.
Compare your budget against best practices and benchmarks. You can make use of a custom benchmark or seek the help of professionals to guide you. Do research on what works for your industry and define your budget allocations. If your stats or benchmark advises you to spend 40% on digital marketing and 30% on events, try to segregating marketing budget accordingly.
Categorizing helps you allocate budget efficiently. You can opt for segregating marketing budget along with your expenses based on the cost of people and the cost of your marketing programs. You can also categorize based on the different mediums used for marketing (such as TV, blogs, websites, social media, print etc.,) and the type of product involved. You also need to talk with the other departments involved like the IT, Sales or Research to see if you have missed out on anything. You can also categorize your marketing campaigns based on the target audience and allocate more for the ones that are more aligned with your goals.
Segregate your online and offline marketing
Segregating online and offline marketing is a good idea to allocate your budgets efficiently. But make sure the segregations work as a unified budget allocation and not as a separate islands working on their own. Your segregation has to be in consistent with your goals and the platform that you choose for achieving the specified goals is what decides your budget. Compare each platform, either online or offline and list down its pros and cons. choose the platform that is the most efficient in helping you achieve your goals.
Track your performance
Form a strategic plan that includes data from past experiences and includes continuous performance tracking. This will help you allocate the right amount for the campaigns that have actually been bringing in profits. Only by measuring the success of a campaign, you will be able to justify the amount of money spent on it. Make use of marketing metrics, online analytics and statistical analysis to know the performance of your marketing campaigns.
The art of segregating marketing budget comes from the knowledge you have about your business and the way you plan for success.