During bouts of recession it is tempting for Tri-City business owners to slash their marketing budgets first. After all, to play on a common phrase, "It's money in the bank." A quick Google search indicated that there are 43,000,000 websites all asking the same question: “How much should I spend on my marketing?” Do you know what the best strategies are in gaining returns on your marketing investment in Tri-Cities?
1Think long term investments
Take a percentage of the amount you would like to make. This is crucial for new companies and those seeking growth.
2Size
The bigger your business is, the smaller the percentage you are typically required to spend. Take a look at the estimated budgets of retail giants:
Now these fractions may seem measly, but they equal millions and millions of dollars. Large companies enjoy intrinsic marketing which means millions of users are talking regularly about their product. Small business might shoot for 7-8 percent of gross sales to compete on a local level.
3Desired Growth in Tri-Cities
If you don't need to grow, then you can keep your percentage the same. But the more growth you're looking for, explosive or steady, the more you should consider spending. It's estimated that start-up marketing in year one can go up to 50 percent. New products alone can require 25% – 50% to launch.
4Age of your business
The longer you've been around, the more you have word of mouth working in your favor. The newer your business, the more you need to march those marketing dollars out to beat the bush.
5 Tri-Cities Location
If you have a prime location and good signage, consider this a part of your marketing budget. If your business is out of the way and rarely seen, it will cost you in marketing dollars to compete.
6Industry
Many industries have other ways of marketing. For instance large scale construction companies are invited to bid on projects and most consumers will never know their names but the few that need to do. Others such as law and healthcare benefit most from word of mouth and might do more in follow-up. Typically those in consumer goods, technology and pharmaceuticals spend the most to compete.
7Bottom line
Spend what you can afford. It’s obvious but true. If you must, consider cutting other things that might not bring you the same return and net your valued employees the same profits in future years.
8Competition
Stalk your competition.There’s a good chance their marketing numbers are out there, and at the very least you can find out where they are spending their money by keeping an eye open for their ads. Look for areas that you can differentiate or do better.
Once you have a budget it’s time to start divvying it up. Again many experts have different thoughts on this. The one we found that makes the most sense, is to spend more to stay the same or find smarter ways of stretching your money.
It’s a great time to pull away from the competition. They might be cutting their marketing, leaving a nice hole for newcomers.
Take a look at one estimated budget shaped by the percentage approach. Notice the allocation for design and campaign creation. Marketing does not depend so much on exposure as it does notice. An ad that’s exciting and noticed once will do far better then a campaign that’s everywhere and too boring to be noticed at all.