- January 7, 2019
- Posted by: Sarah Ford
- Category: Business Strategy
One of the questions I’m often asked by business owners is how much they should 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.
Ever hear the expression “failing to invest is investing to fail”, well, ok, I made it up, but it’s true! By allocating a fixed 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:
- Expanding your customer base & reaching new consumers;
- Creating loyalty amongst existing customers to keep them coming back, trading them up to buy more frequently or spending 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!
- Encouraging customers and clients to become brand ambassadors, by fostering reviews, recommendations and goodwill.
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.”
Having a strong brand is a huge competitive advantage – a recognisable brand with a strong 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… 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 on 0413 486 833 today!