Savvy entrepreneurs and business owners regularly review and update their budget. While the primary goal may be to stay on budget to manage your finances, a close secondary goal may be to identify ways to save money on various expenses. For many businesses, the marketing expense may be significant, and because of this, you may be taking a closer look at your marketing budget and wondering if there are any creative ways you can trim this expense.
Marketing is a necessity for a healthy business, and you may be aware that you need to spend money in the area of marketing in order to generate new leads and sales. While you certainly do not want to take steps to jeopardize sales and revenue, you also may want to save money on marketing efforts. The good news is that there may be some excellent ways to trim expenses without negatively impacting your revenue potential.
What Is Included in Your Marketing Budget?
Before you can trim down your marketing budget, you must first ensure that your budget includes all of your current marketing expenses. Your budget for marketing should include all online expenses, such as your website, social media ads, search engine optimization fees and more. It also should include display ads, trade show expenses, print ads, flyers, direct mailers, telemarketing and other expenses. As you review your budget, ensure that you have included all relevant expenses in this line item.
Which Companies Need to Have a Strong Marketing Budget?
All businesses serve a specific client base. Your client base may include direct consumers, other businesses, the government or other entities. You must find an effective way to tell your target audience about the goods or services that your business offers through marketing, and you hopefully will make your marketing message enticing so that they are motivated to contact your business for more information or to make a purchase. This holds true for manufacturing businesses, retail stores, restaurants, law firms and a wide range of other business entities and types. The bottom line is that all businesses need to spend in the area of marketing.
What Is a Reasonable Amount to Spend on Your Marketing Budget?
While you understandably need to spend money on your marketing budget, you may be wondering if you are over-spending or under-spending. After all, you want to take every step possible to promote sales and growth.
The actual amount that a business should spend on marketing will depend on where they are located, what niche they are in, who their target audience is and more. Some businesses, for example, can more effectively take advantage of free online marketing options than others can. As a good rule of thumb, however, you can reasonably expect to spend approximately two to 10 percent or more of your gross sales on marketing expenses.
Five Tips to Reduce Your Marketing Expenses
Your business has a fixed amount you want to spend on marketing, and you may even be thinking about spending less in the months to come. The good news is that there may be some effective ways to reduce your marketing expenses while maximizing leads. In fact, when you focus on these tips, you could increase revenue while decreasing overall spending.
1. Refine Your Marketing Message
One of the first steps you should take is to refine your marketing message. There is no cost associated with this, and you can maximize your return on investment. Many businesses unfortunately focus on promoting sales and discounts in their marketing message, but benefits drive sales. Consider educating your target audience on how your goods and services can improve their lives, save them time or money or give them other benefits.
2. Review Analytics Regularly
If your business is not currently reviewing marketing analytics on a regular basis, you are missing out on a great opportunity to maximize your marketing budget. Through analytics, you can determine what is working and what is not producing a desired outcome. You can then determine which areas of your marketing efforts deserve a greater or lesser allotment of your marketing capital, enabling you to maximize your return.
3. Automate Your Marketing Efforts
There are many options available for automating marketing. For example, you may set up automated social media posts so that you take advantage of timely marketing in this free area. This ensures that your marketing message is being delivered consistently regardless of how busy you are. It also can decrease your marketing effort, making your operation more efficient. You can explore marketing automation options today to begin implementing the use of this technology in your business.
4. Maximize Online Marketing
Another helpful step to take to reduce marketing expenses is to maximize online marketing. You can pay money for some types of online marketing, such as large display ads on other websites. However, many aspects of online marketing are free. For example, you can write SEO-rich articles and place them in off-site locations. These can draw traffic to your website without cost to you. Social media provides you with another incredible, free option to consider.
5. Take Advantage of Free Publicity
Most businesses receive at least a modest amount of publicity, such as through news stories, mentions in off-site news articles and more. You can spread the word about these through your use of social media marketing, newsletters and more. This allows you to get the most leverage possible when others mention your business. You can even create your own marketing buzz by issuing press releases and contacting the local news media to suggest personal interest stories if your company volunteers in a charitable event or makes some other similar contribution to the local community.
Saving money is a top priority for most businesses. Your marketing budget may seem higher than it should be, and you can easily trim the fat by refining your marketing efforts. You do not necessarily have to cut back on marketing efforts to save money in this area. When you more effectively manage both your time and marketing money, you may be able to increase your return on investment while decreasing spending in various ways. Consider how you can apply these helpful tips to reduce your marketing expenses going forward.
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