As a small or medium business (SMB), knowing how to allocate your marketing budget is crucial for growth and success. Your marketing budget helps you connect with customers, promote your products or services, and build your brand.
This article will guide you through the process of setting an effective budget from advertising to maintaining and improving your website. Let’s break it down in simple terms.
Why Marketing Matters
Marketing helps people learn about your business, what you offer, and why they should choose you over the competition. It is an essential investment for reaching new customers and keeping existing ones. Without it, even the best products and services can go unnoticed.
Marketing can include various activities such as social media advertising, email marketing, content creation, and more. The right marketing strategies can significantly increase your visibility and sales.
Understanding Marketing Budget Basics
The first step in creating your marketing budget is understanding that it should be based on a percentage of your revenue. Here’s a simple breakdown:
- B2B (Business-to-Business):
Spend 2% to 5% of your annual revenue on marketing.
- B2C (Business-to-Consumer):
Spend 5% to 10% of your annual revenue on marketing.