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What is a Marketing Budget – Definition, How to Make, and More

What is a Marketing Budget – Definition, How to Make, and More

Definition – Marketing Budget

Marketing Budget lists all the money that a business intends to spend on marketing-related actions over a specified time (typically a quarter or a year).

A marketing budget can include different items to classify the expenses related to these proposed actions. For example, costs include online advertising, hiring for the team, specific marketing software, content creation in the post or video format.  It depends on your business’s needs and where you want to allocate part of your resources to meet your business objectives. And marketing.

How to Make a Marketing Budget?

First of all, we must have accounted for most of the information related to marketing from previous years. Later, we will begin to design the budget for the new fiscal year.

To do this, the most common is to assign a percentage of our income to this area. Once we know the complete game, it is time to make detailed assignments for each action. Marketing has different alternatives, and you have to carry out an exhaustive study of the most exciting campaigns for the company.

Finally, we must carry out a follow-up during the established period. It  Will allow us to check if the allocated budget is being used and how much remains to be spent.

Marketing Plan Budget Template

When creating your marketing budget, there are apparent advantages of using a Marketing Plan Budget Template

The prepared format and formulas, customizable features, organization, and efficiency. All marketing plan budget templates below are in Microsoft Excel format and are free. You will find complete marketing budget templates to create a detailed plan, with monthly, quarterly and annual views and budget models for specific marketing campaigns, such as social networks, website design, planning. Events and product marketing.

We also provide [marketing budget] models at Smart Sheet, a real-time work execution platform that facilitates monitoring the marketing and most collaborative budget than Excel.

Why is it Important to Make a Marketing Budget?

The important thing is to have a reference guide to know the money we have for each type of action and marketing strategy.

Developing a marketing budget is helpful for:

  1. Know what the funds attribute to each type of resource and action. In this way, how much you will spend on every marketing strategy. For example, if your goal is to improve the online positioning of your website and get more visits, you should pay more about SEO and content generation.
  2. Expenses of supervision department. You can quickly see if some elements represent an enormous investment you have planned and adjust your costs accordingly.
  3. Disease more resources to the actions that work best. If you have greater clarity in the expenses of each of your marketing items, you can quickly evaluate your return on investment.
  4. Have a reference story. You can use your previous budgets as a guide for future exercises and evaluate the changes to your business needs according to your results.
  5. Define objectives. If you decide to include a new item on your budget, take advantage of the possibility of defining the result that you want to get with this (you can use other things on your budget whose performance is already experiencing as a reference).
  6. Plan long-term. It is conducive to exert specify which actions will be conducted throughout the year because it allows you to prioritize your efforts. In addition, if you monitor compliance with this objective budget, you can better understand the areas you invest in more or less and better understand the nature of your business marketing.
  7. Understand marketing expenses as investments and, consequently, an opportunity for the growth of society. You will learn to generate more and more opportunities for business development by taking advantage of everything.

Example

Suppose we have a sound equipment company. We have a multitude of products, and we must promote them differently. The budget that we will assign to the marketing area will be € 100,000.

Within this budget item, it is necessary to make divisions for each action or campaign to be carried out. Therefore, we will make the following assignments:

  • Digital Marketing: € 20,000
  • Sponsorship of concerts and gift of units to be tested: € 35,000
  • Corporate social marketing: € 10,000
  • Social networksand SEM: € 7,000
  • Advertising on billboards: € 3,000
  • Influencers and athletes sponsorship: € 25,000

In this way, we have already designed the [marketing budget] of our organization. Next, we will need to track and quantify the return for each of the market actions. This information will be helpful for next year to decide what actions are beneficial for the company.

In conclusion, the marketing budget is the budget that a company assigns to the marketing area to develop the actions it has planned.

Also Read: Lean project management

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