When you try to grow your business, one of the crucial things to focus on is identifying how large or how small your marketing budget should be. Needless to say, we can’t have a specific number because some companies are large, while others are small. But there are some percentages that we can focus on, and which can be an ideal situation.
The ideal marketing budget
Every company has its fair share of unique traits and features, so it’s important to adjust your marketing budget based on that. However, the best idea is that B2B companies should spend 2% to 5% on their marketing budget. If you have a B2C company, which is most likely the case, you need to spend anywhere from 5% to 10%. That being said, it’s just a guideline.
More often than not, larger companies spend up to 25% of the budget on marketing, especially in the beginning or when they have a massive product launch. With that you get to see that the marketing budget will vary quite a lot based on businesses and other determining factors.
Setting the right goals and considering additional costs
What you will notice is that you need to set marketing goals and those will influence your marketing budget. If you just want to reach new clients, then that will cost you less when compared to getting a specific amount of sales. That’s the reason why you want to avoid any rush and doing that properly can indeed make a huge difference. We always recommend studying the market and understanding what customers want, then you can narrow down your marketing system in order to keep the budget affordable.
Plus, there can be additional costs related to the marketing campaign too. That might include the use of multiple platforms and all kinds of other systems and ideas. It will take some trial and error to implement that properly, and doing that wisely will make a huge difference.
Conclusion
Having a 5% to 10% budget from your total funds is ok for most businesses, but there can be times when you need a larger budget. Which is why understanding the process and making sure you have access to the right funds is very important. You have to approach this after you performed your due diligence. Sometimes you have to spend the extra marketing budget in order to reach specific audiences, but it will be worth the investment!
