Posted by

Cintia Miranda Cintia Miranda
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

edge contributor



A good business plan starts with a solid marketing budget

Rate this item
(0 votes)

Contrary to popular belief, a marketing budget isn't a luxury; it's an essential investment into reaching your business goals. A precise marketing budget, with clearly defined spending strategies, ensures that your efforts make the greatest impact with the resources you have and for that reason, it's an indispensable part of a successful development plan.

A steady customer stream

When funds are limited, it's easy to expect that your current client base is enough to sustain your business without additional marketing and yes, according to Forbes, it's nearly seven times more costly to gain a new customer than to retain an existing one. Remember, though: if you're trying to cut back on expenses, chances are at least a few of your customers are too. Plus, even loyal customers can relocate, change job schedules, or go through other lifestyle changes that make it unfeasible for them to visit your business regularly. Allocating even a small budget to continued marketing means you'll be able to reinforce your current profits with at least a few fresh prospects.

An edge over the competition

If your competitors cut back on their marketing spending, that doesn't mean you should do the same. Keeping up communication with prospects and customers can go a long way, especially when your competitors are going silent. Numerous studies, in fact, have suggested that increasing marketing funds during a recession can help businesses get ahead of the game (source: MarketingProfs). Every business is different, of course but before you decide to cut your marketing budget entirely, consider whether doing so would make strategic sense for your customer trends and sales processes.

Better insights into your customer process

Market research is essential to understanding your customers' decision-making cycles, such as how they're finding your business and what challenges they're looking to solve. What's more, monitoring the performance of your website and other pages can shed light on whether the money you have spent is helping your business. Even if you don't budget for new marketing efforts, it's a good idea to invest in a reliable measurement system to keep track of your current return on investment and to form new strategies for the future.


The Maine Edge. All rights reserved. Privacy policy. Terms & Conditions.

Website CMS and Development by Links Online Marketing, LLC, Bangor Maine