- January 1, 2020
- Posted by: Sarah Ford
- Category: Business Strategy
One of the questions I’m often asked by business owners is how much to spend on marketing. The answer is simple: a great rule of thumb is 8-12% of gross turnover. That includes spend on all of your marketing across Owned, Earned and Bought media including website, brochures, signage, social media, Adwords, SEO, advertising, branded content, P.R., marketing events, and sponsorships. In most cases it also needs to cover marketing expertise & any creative development.
You don’t need to spend a fortune – we’ve worked with budgets from $250 to $25m – but by clearly allocating a proportion of your turnover (or forecast turnover) to marketing, you’ll set yourself up for success in driving future growth as well as managing the day to day needs of your business.
Why invest in marketing at all? Marketing is essential in:
- Reaching new consumers to expand your customer base;
- Creating loyalty amongst existing customers to keep them coming back: trading them up to buy more frequently or to spend more per occasion;
- Standing out from your competitors – it’s not enough to have a great product, or a new or different offering, in order to be successful you have to tell people about it!
Don’t just take it from me, as Marketing Guru Seth Godin has said “If you are marketing from a fairly static annual budget, you’re viewing marketing as an expense. Good marketers realise that it is an investment.”
Investing to build a strong brand is a huge competitive advantage – a recognisable brand with a positive & trusted reputation translates to higher sales, more effective advertising spend, increased word of mouth, the potential to increase margins by charging a premium & improved negotiating power for your business. Don’t just put all of your spend into Facebook Ads and hope for the best – working with an expert who can develop & implement a targeted marketing strategy tailored to your business will maximise your ROI so that every dollar works harder.
Investing consistently in Marketing is essential in this new decade… it will drive short term sales AND build your brand, setting you up for success via sustainable, profitable business growth.
For practical, cost effective & proven strategies designed to build your brand and drive profitable sales call Sarah from BlueFish Marketing on 0413 486 833 today!