Brand.ed Magazine Issue 4 : #i4War - Page 7

What To Consider When Setting A Marketing Budget. By Melanie Venuto A common mistake businesses make is building a strategy around a marketing budget rather than crafting a budget based on a strategy. The latter allows for strategic allocation and prioritization of budget. The first approach, however, can often lead to misguided decision making, leaving marketers struggling to prove ROI and therefore, making it even more difficult to make the business case for increased budget later on. Knowing how much you have to spend on marketing is important. Knowing how to spend it is critical. The best way to ensure that your marketing investment will be well spent is to take time upfront creating a sound, comprehensive, and strategic marketing plan. From there, prioritize the channels in your strategy and allocate budget where it’s needed most. A marketing budget should be a component of your marketing plan, rather than a driver. Your mar- keting strategy should outline how you are going to achieve your marketing goals and what it’s going to cost you. As you and your team are defining your marketing goals and developing a strat- egy and budget behind it, it’s important to keep the following in mind: Marketing is an Investment, Not a Cost It’s a mistake to perceive marketing initiatives as costs or as an obligatory ex- pense. For this reason, marketing budgets are often lumped into a sales budget, leaving marketing and sales departments to decide what gets allocated where. The result? Classic conflict between sales and marketing teams. It’s a mistake to perceive marketing initiatives as costs or as an obligator y ex- pense. For this reason, marketing budgets are often lumped into a sales budget, leaving marketing and sales departments to decide what gets allocated where. The result? Classic conflict between sales and marketing teams. When creating a marketing plan for your business or pitching a strategy to your leadership team, communicate marketing spend as an investment. A purpose-driven, strategic marketing plan can produce large return on investment when it’s executed effec- tively. It costs money to make money. When funding is spent the right way, your return will exceed the cost. It’s Not Just About the Money When developing your marketing budget, it’s crucial to take labor into considera- tion. Time is money, And when marketing plans are executed by personnel that are inexperienced or inefficient, you’ll see minimal ROI. You could spend thou- sands of dollars on tools and services, but you need to factor in the time it takes for your teams to learn and use the tools that you invested in. A recent CMO sur- vey reports that despite large investments in analytics and marketing tools, busi- nessleaders are not able to see high ROI due to lack of trained professionals working with the tools. This is causing many leaders to dismiss analytics all to- gether. In fact, according to the survey, only 35 percent of marketing leaders report they formally evaluate the value of their marketing analytics. Melanie Venuto Human, being. Managing Editor/Content Strategist Instagram: Melanie_Venuto Test, Analyze, and Adjust In marketing, data is your friend. Don’t wait until the end of the year to see if things are working. Analyze your campaigns and adjust budget alloca- tion as needed. In digital marketing, this happens on a quarterly basis and it takes skilled and knowl- edgeable marketers to understand what the data means and change course when needed. With digital platforms changing constantly, it’s imperative to have a team that keeps up and knows how to make the most of those opportunities. It is a valuable expense to pay for analytics training for at least one person on your marketing team. Most market- ing strategies in the music industry focus on social media. The best approach is to prioritize the chan- nels and allocate budget where it’s needed most. Whether a budget is tight or robust, the quality of the strategy and how it is implemented matters most. 7