How to Prepare a Marketing Communication Budget
Preparing a marketing communications budget is important for large and small businesses alike. If you are a small-business owner, it may be tempting to skip the part of the budget for marketing to save money. However, when business is slow, it's imperative to promote your products or services heavily in order to increase your profits. You will have to spend money to make money. But you can be wise about where you focus your funds, and the best way to ensure that you don't overspend is to have a marketing communication budget.
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Instructions
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List the sales goals your company has for the coming year. Take into consideration last year's totals and if there is a reason, such as an expansion, that totals should be more for the coming year.
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Calculate the amount of funds that will be used to market your company to meet your sales goals. You may choose to mimic your competition's strategy, allot a percentage of sales to marketing, use last year's budget or work from the results that you hope to achieve.
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Determine and list the avenues within your budget that you will use to communicate your marketing strategies to your target customers. For example, common approaches include face-to-face appointments, mailings, banners, billboards, radio or print ads, community involvement and networking opportunities.
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Plan any incentives or specials for the year and outline them in your marketing communication budget. These may be seasonal or random. For example, you can have a buy-one-get-one free campaign, offer a percentage off of services through a coupon mailer or reward frequent customers.
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Increase brand awareness by listing the ways you will keep your company name, product or service in the consciousness of the public. One way is to use promotional products with your business and contact information imprinted on them. For a small budget, communicate your message with inexpensive pens, balloons, notepads or magnets. If you have enough money, you can screen print your logo on apparel items, such as T-shirts and hats, and let your customers advertise your brand for you.
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Budget for more employees if you plan to increase the amount of sales personnel. Increasing sales for the long term will rely on the relationships that your employees build with your customers. Part of sales is to explain why the prospect needs the product or service and cannot live without it. The best approach to accomplish this is in person.
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Send your marketing budget plan to your certified public accountant to determine if your projections are realistic depending on your current sales, forecast revenues or an average of the two.
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