What marketing budget will you need to keep your business competitive?:
Marketing Budget depends on the industry and your business niche. There are many factors that affect the marketing budget, such as the industry you're in, your target market, your products or services, and your marketing strategy.
Here are some guidelines on how much to spend on marketing:
If you're starting a business in an expensive industry (such as real estate), start with a low budget.
Make sure your marketing is targeted to your ideal customers.
If you're starting a business in a popular area with a limited market or buyer pool, you can start with a higher budget. This will allow you to reach more people with your message.
If your business has high startup costs or you have to buy expensive machinery or equipment, you can budget more for marketing expenses.
You can keep your marketing budget low if you know that you have high-quality products or services that are hard to imitate.
As a thumb rule, to begin with, a marketing budget of 10–15 % should suffice which may be adjusted later or in the future based on ongoing trends.
If the business is already up and running, 5–10% of the average sales turnover over the past 4–6 months be enough.
Interesting Stats About Marketing Budget:
Share of marketing budgets devoted to mobile marketing in the U.S: 18.5% (Statista).
In a survey conducted in February 2021, responding marketers in the United States indicated that 14.9 percent of their marketing budget was devoted to social media marketing (Statista).
73% of those companies that believe to have had a very successful content marketing strategy in 2021 spend from 10% to 70% of their total marketing budget on content marketing (Content Marketing Report 2022 by Semrush).
17% of companies say they spend over half of their marketing budget on influencers (The Ultimate Guide To Influencer Marketing In 2022 by Sideqik)
Pro-Tip 2: Don't overlook content repurposing and e-mail marketing strategies, which will help you save money on marketing in the long run while also increasing conversions and customer acquisition chances.
Overall, to be competitive in your market, you need to spend money on marketing to reach as many people as possible to drive the outcomes as per your business and marketing goals.
All the best...
By the way, if you are interested, you may access - Hub and Spoke Content Marketing Model to gain long-term business benefits.
P.S: If you think this blog post will benefit you or others in your network/community, please share it, so that those in need can benefit from your tiny efforts! Also, don’t forget to see other value-packed blog posts from this blog that might help you/your business.