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  • Suniti Tripathi

How much money should a brand invest in Marketing and Advertising

The caterers and advertisers from all over the world often face challenges in setting up a budget for marketing. Especially if you are a startup, the need for a planned budget is way higher than an established company or Brand.



What is a Marketing Budget?



The investment made on Google Adwords, Print ads, Social Media, sponsorships, Collateral and tastings comes under the Marketing Budget. The cost invested in Public Relations, promotions, advertising and any promotional event comes under Marketing Budget.

The 5% Rule

Experts and marketing analyst suggest that spending 5% of the annual revenue is the perfect score for advertising and marketing campaigns. However, the percentage might vary at a certain period in case of crisis or any financial circumstances. Many times you have to invest in advertising irrespective of the sales outcomes to sustain your Brand.

The Core Foundation

Initial framework based on which daily marketing activity occurs might involve more expenditure. The website business needs an update after a year or two. This expenditure is not a part of 5% as it's the foundation.

If you cut off the foundation expenditure, then further investments in promotions and ads are waste.

The Brand Foundation consists of:

1. Marketing Strategy

2. Brand building

3. Website Design

For effective marketing, it's essential to keep the foundation healthy.

A businessman who saves money on advertising is similar to someone who stops the clock for saving time. - Henry Ford

Key Points to make your Marketing Budget worth


Stop thinking about your marketing budget as an expense. Marketing is an investment for your Brand's future. Ultimately every business needs promotion to grow and reach a more expansive space. It's not an expense; it's an investment in your Brand's future.

Pen down the goals


You feel prepared in mind, but eventually, you require a written goal card fo the year to map things. Be clear about what you wish to achieve with a particular campaign, advertisement or any marketing event. Pen down each with a set time frame.

The goals could be:

1. Many visitors on the website.

2. Lead Conversions

3. New product launch

4. Sales growth

Evaluate Your foundation


Is your foundation strong enough to support your plans?

Check your website, communication channels and reporting systems.

Start making your Marketing Budget.

The first step is to allocate a limit on every marketing activity. Limit 5% of the revenue on the day to day marketing activities. Invest in making your foundation strong and once done, allot resources and plan your day to day marketing processes.

Advertising is the fuel for your business; it helps in leveraging maximum benefit with least input.

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