Marketing Budget Makes All the Difference
From a garage startup to a Nation’s government, Budget serves to be an important part of survival and success. When it comes to business, unlike other budgets like Finance or Operations where there is a specific set of deliverables pinned to the plan, Marketing is a tricky one as most of the deliverables are based out of assumptions and no one knows how the Market will respond unless we try things out on the field. The Marketing game is about a bit of a fair gamble and added rationale.
Now as a quick bite: What is Marketing Budget?
A marketing budget is an estimate of projected costs to market your products or services. A typical marketing budget will take into account all marketing costs e.g. marketing communications, salaries for marketing managers, cost of office space etc. However much of the budget is concerned with marketing communications e.g. campaigns, public relations, website, advertising, etc.
If you take a swing at the successful companies, they have the cash bag planned well to the point and keep moving swiftly ticking milestones. Samsung for instance, had spent $14bn (rumored to be the biggest in history) on marketing and promotion of its products in 2013 – more than Iceland’s total GDP. The plan was to pick a place over the rival Apple, and it was successful stab too. The point to be made here is that for the marketing plan to be a huge success, the marketing budget has to be given critical importance.
What can possibly go wrong when the Super Villain takes charge?
A marketing plan without a determined Marketing budget is like a Superhero without any special power. And that’s just not it, over the time; a poorly planned marketing budget can become a Super Villain with evil powers to kill your business too.
Everything freaks outand your plan crumbles down when you fail to plan your marketing budget. Zero budget or over budget, anything other than a planned budget is a BAD budget. The consequences can be as worse as it becomes.
Promotion becomes demotion:
You become all so excited and sprinkle all your money into one big promotion that you believe will change the face of your business. Well if you haven’t budgeted it stage by stage, not only does the promotion go vague but it ruins your brand reputation too.
Even your best product becomes a silent Introvert:
The assumption that “Build something big and business will follow” is a myth. If not supported by a strong marketing budget, all your efforts will go unnoticed and eventually lead to an untimely adventure of your brand image.
Resource allocation becomes a blind gam(bl)e:
Without a precise Marketing Budget, resource allocation to achieve your business goals go at stake as it is difficult to presume what to spend and how to spend without having a blueprint of the costs involved. Where’s the fun in gambling when you don’t know how much you have in your pocket?
Neighboring departments left clueless:
A clear Marketing plan has to take into consideration – all the departments, like scoping the marketing according to the manufacturing, aligning the promotions according to the operations and so on. Without a candid idea of the costs involved, it will be a bush on the balcony that everybody will keep beating upon and end up in nothing but dust.
Result tracking becomes an assessment without an evaluation:
Imagine your teacher evaluating your test paper without any marks. That’s how it is to measure results in your firm without any numbers attached to it in prior. It can get worse, when you actually put marks to it without knowing how much it is actually worth for.
Management wonders “Where did all the money go?”:
End of the day, what matters to the Management is SUCCESS. When a poorly budgeted plan will obviously not lead there, the next question would be nothing less than a nightmare to every marketing Manager- “Where did all the money go?” Well, it’s complicated.
Without a plan and well-defined budget, you are vulnerable to impulse decisions that will cost you not only money and priceless time, but irreversible brand derail. Either budget your business perfectly and let your brand become a Super Hero taking you heights, or budget it poor and let your brand become a Super Villain burning your business down the hill. The choice is yours. Take it serious.
Now that’s our take on the effects of a poor marketing budget in your business plan. Now what after planning a perfect marketing budget? Let it be building identity like Logo design, web design, web-development or promoting your business with SEO, graphic design, print design, social media marketing and so on, it takes not just a professional touch but a friendly approach to present your vision to the customer world. At Designpluz, we do just that. As a creative branding agency, we do everything that takes to take your business to the next level. We are just a call away.
Ring us to discuss more at 02 8872 4440 or email us at firstname.lastname@example.org.