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How Much Should I Invest in Marketing?

Discussion in 'Sales, Marketing and PR' started by Dandelion, May 28, 2015.

  1. Dandelion

    Dandelion Entrepreneur

    Want to start a new business. It's about selling home cleaning products. What is the percentage of whole budget should I invest for marketing? I think it would be around 9-12% of whole budget.

  2. Zuckerberg Jr

    Zuckerberg Jr Entrepreneur

    I think you can start 10% of your whole budget. As you are in home application I suggest you to use social media adds as well as TV ads. You know TV ads are quite expensive but it has great impact. Use A/B testing as much as you can
  3. Twista Tom

    Twista Tom Entrepreneur

    Marketing is everything is you are starting a new business. If possible try to reserve 20% of your whole budget for marketing.
  4. dwhs

    dwhs Business Owner Entrepreneur

    Yeah we are around 10% budget for marketing but sometimes we bump it up over 30%. The average is probably around 15% a little low I think. It's just hard to get a solid ROI, or even close. Adwords was the only one that worked before but even Google is not giving a good ROI now.
  5. Niche

    Niche Entrepreneur

    I'm constantly shocked that small businesses and entrepreneurs do not want to invest in marketing. The slipperyness of the ROI is what causes this hesitation and things seem to be constantly changing in the online landscape. What has a hot idea last months seems to be a hot brick this month.
  6. Apollyon

    Apollyon Entrepreneur

    Personally I'd invest at least 15-20% of your budget into some sort of marketing. You're a new business in iirc a very competitive niche. You need to get word out fast
  7. Sugar Cube Productions

    Sugar Cube Productions Business Owner Entrepreneur

    It all depends how quickly you want to grow. The more money you invest in marketing, the more business you should hopefully get.

    So spend as much as you can afford to spend.

    The problem with trying to fix it as a percentage is that it's meaningless by itself. Some industries can thrive with no marketing at all, some have to spend huge amounts just to keep themselves known.

    What you should do instead is work out who your customers are, where you could attract them from, and how much that will cost to do. It's much better to work out what everything could cost and then pick the avenues that you think are most likely to work for you.

    Also plan to spend about half of your initial budget in the first 3-4 months. You'll need to try things to see what works for you, then cut out the ones that don't work after. The ones that do work will then bring in revenue so that you can then afford more marketing.
  8. dyanmarie25

    dyanmarie25 Entrepreneur

    Since you are just a newbie in this kind of business, I suggest don't invest too much money on marketing, I think 10% of your budget is already good enough for you to promote your products. You can just start by advertising your products/items through various social media sites. Take advantage of the internet and its perks.
  9. 111kg

    111kg Entrepreneur

    It depends of a lot of factors. At a first glance, the budget depends of:
    1) your budget;
    2) how big is your company;
    3) the average costs of advertising in your area.

    Do you have an online store too? If yes, then the whole marketing project might be more complicated, especially as it isn't as easy as it used to be some time ago to reach your potential customers.

    What are your plans at the moment?
  10. @RetoWolf

    @RetoWolf Business Owner Entrepreneur

    I might be a bit late to your thread... But I would encourage to do some calculations on marketing opportunities first. If you don't have an ROI mindset when it comes to marketing it will be rather costly and potentially inefficient. So start by defining your target audience (as narrow as possible), then size the universe (i.e. how many of them are there), then asses your market opportunity (how many are in the market to buy and will they buy of you or a competitor) then figure out if you were to convert all these potential what the maximum revenue would be you can make. Once you know that figure you can determine how much of that you should spend on marketing. Message me if you want me to elaborate further.

    Hope that helps,
  11. Capital SEO

    Capital SEO Business Owner Entrepreneur

    Look at your budget, co sider your ither costs and invest as much as makes sense to invest.

    Remember, what you get out of marketing is aligned with how much you put in.

    Good luck!
  12. Joe

    Joe Entrepreneur

    What if your business is a B2B,is advertising as much as a priorit, when you could make a few calls?
  13. @RetoWolf

    @RetoWolf Business Owner Entrepreneur

    Hi Joe

    With B2B you might use different channels yes, but in general terms B2B tend to spend less $$$ overall but more marketing per sale. This is because you have fewer buyers but with a much bigger potential to purchase volume of you. For example if you are selling pens... You have a newsagency and you are selling 1,000 pens a year to consumers. You'd have to convince 1,000 buyers to buy that pen. This might cost you a lot because your product is quite generic. Now you are a pen manufacturer and you sell to newsagencies or someone like officeworks. You would still sell 1,000 pens but you only have to convince that one newsagency to buy 1,000 pens... You will obviously choose different channels to advertise, but you will also make less money if you only sell 1,000 pens (wholesale pricing and all)...

    Hope that helps,
  14. Jack Benoit

    Jack Benoit Entrepreneur

    • Fоr B2B firms, mаrkеting budgеts аs а % оf firm rеvеnuе fеll within thе 5-6% rаngе
    • Fоr B2С firms, mаrkеting budgеts аs а % оf firm rеvеnuе fеll within thе 11-13% rаngе
    • Асrоss bоth есоnоmiс sесtоrs (B2B & B2С), mаrkеting budgеts hаvе dесrеаsеd frоm lаst yеаr
    • Mаrkеting budgеts fоr firms sеlling prоduсts tо thе соnsumеr mаrkеtplасе (B2С) inсrеаsеd frоm lаst yеаr
    • B2B budgеts hаvе inсrеаsеd tо thе 7-9% rаngе
    • B2С budgеts аrе hоvеring аrоund thе 9% mаrk
    Bаsеd оn thеsе rеsults, wе sее thаt B2B mаrkеting spеnding hаs inсrеаsеd оvеr thе pаst соuplе yеаrs, whеrеаs B2С mаrkеting spеnding hаs асtuаlly drоppеd а bit.

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