Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Business » Marketing & Promotion » Article
 

What should my marketing budget be?




By Peter Lawless

Getting the most from a limited marketing budget is quite a challenge for the average small business owner. I always ask, business owners how much they spent last year – and how much business did that bring in. Can you answer that question? And are you sure that all of your spend brought the best possible return? This article, gives some simple rules of thumb on setting budgets, an easy way to track your spend and some tips on where to spend your valuable budget. Generally people look for a 1:10 ratio on new products and 1:20 ratio on established products to maintain momentum.

Before you allocate any marketing budget, you must have set some goals on what sales you are looking to achieve. After all a game of soccer would be pretty pointless without goalposts!

Generally people look for a 1:10 ratio on new products and 1:20 ratio on established products to maintain momentum. This means that for every Euro spent, you should get at least 10 euros in sales.

Going back to last year's budget, did you track it? Did you measure the effectiveness of all of your spend on Marketing? Large companies do micro analysis on all campaigns, with lots of testing. At minimum, you should track and monitor everything you spend.

It is good practice to have a sheet, this makes it easier to budget effectively and track the results of your marketing spend . The headings above, are just examples, you should track each individual campaign, so that when it comes to next year's budget you will know what works, and what do ditch.

Who should I market to?

Most people think that if they spread their message around, then someone is bound to respond. This is simply not true. You need to carefully select who your likely "suspects" are.

Most business plans, suggest that you do huge amounts of market research, however if you have sold your offering already, and you have delighted your customers, then you already know who you should be prospecting to in the future.

Let's assume you are an accountant, and you do some analysis of your existing customers and find that you have 10 plumbers on your books. This actually makes you an expert on helping plumbers with their financial matters.

It would make sense to target plumbers, by ensuring your message, preferably by using testimonials from other satisfied plumbers, is visible in the places that plumbers spend their time.

    You should ask your self the following questions Is there a trade magazine that they subscribe to? Are their key suppliers that run trade shows, that you could piggy back on? Are their websites that plumbers buy materials from that you could advertise on? Are their specific stores that Plumbers go to, that you could leave some flyers, telling plumbers what advantages other plumbers have got from using your services? Is their a plumbers association, that you could contact, and offer them some special discount or introductory offer through?

The list is endless, and indeed each industry niche that you service, will have their own specific haunts and influencers whose advice they seek.

Every industry is different, yet the principles of marketing are the same. We have created a range of marketing programs, to enable business target their most profitable niches, with messages that will turn them into eager buyers. Why not avail of our Sales & Marketing Assessment to see if we have a program for you and your top 3 niches. The assessment takes 45 minutes, and is free with no obligation on your part.

This article was written by Peter Lawless, founder of 3R Sales & Marketing – www.3r.ie For previous articles and interviews like this, visit 3R's InfoCentre . Or Subscribe to Success our free monthly email bulletin, which will grant you access to articles on sales and marketing, written specifically for Small Business Owners.


 
 
About the Author
With over 20 years in industry, most of it spent in senior sales management positions, sales success is no stranger to Peter Lawless, founder of 3R Sales and Marketing. Prior to setting up 3R, Peter successfully set up the Sales and Marketing Divisions of two Start-up companies, by generating significant revenue.

Article Source: http://www.simplysearch4it.com/article/26851.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/26851.html" as shown above and make it hyperlinked.



  Some other articles by Peter Lawless
Do you obey the 5 commandments of customer communication?
Every time you interact with your customers or prospects, is a chance to enhance the image of your company, and thus ...

Do you communicate effectively inside your company?
The customer has gone out the door; he has just placed a large forward order for delivery next march. Can you be sure that he will get what ...

Fostering a Superior Customer Service Culture
In order to be hugely successful at business, you must provide a truly excellent level of service to your customers. You must continually exceed their expectations and delight them. Knowing how ...

Give one away free to your customer - Right Now!
In today's modern society, we are all hell bent in getting as much as we can, in the limited time available to us. So why bother ...

Assign marketing budgets that break the bank!
That's right, break the bank with profit. Profit is achieved by maximising your margin on increased sales. Spending money on marketing wisely ...

Why Conducting a customer survey could double your profits!
Customer Surveys are the most inexpensive way of generating profits, which any business could dream of. Companies like IBM used to pay their sales people, a bonus, based on the customer survey ...

  
  Recent Articles
The Affiliate Marketing Network Advantage
by Laurie Raphael

Marketing your business online
by Candy Steele

Public Relations
by Ismael D. Tabije

Thirteen Step Action Plan For Everyone, That Needs More Business Now.
by Paul Douglas

Article Marketing & List Building: How to Promote Your Ezine & Build Your Own Hyper-Responsive List
by Eric Gruber

How To Build An Opt In List And Your Business
by Dencho Denchev

4 color printing in business cards and posters; You cannot have it any other way
by Florie Lyn Masarate

Plumbing marketing approaches that make your business work with a profit
by Ken Wilson

Builders projects in India
by yaken schecher

What You Should Know To Build Your Affiliate Web Site
by Laurie Raphael

Professional Logo Design: The Foundation To A Powerful Brand
by Alfred Anderson

Equipment, cost and communication; What good printers are made of
by Florie Lyn Masarate

Can't connect to database