You have the best idea in the world, but how do you want to get it across to an audience? Marketing is the process of getting it done.
It can be hard to get carried away by all the ideas and strategies that are out there in the marketing industry. However, remember that planning and budgeting are two of the most important factors businesses need to consider when it comes to marketing.
The Math Behind Marketing
Most people have no idea about a budget when starting a company. Here is a marketing math tool that helps clients figure out what their budget should be. New businesses should use 12 to 20 percent of their gross revenue as their marketing budget. This is because, if they’re still in their early stages of operation, they usually need to ramp up their marketing efforts before they can start spending money on marketing.
It is suggested that established businesses allocate between 6 and 12 percent of their gross revenue as their marketing budget. Although it may seem like a lot, new and emerging businesses usually want to capture a larger market share by developing a brand recognition strategy that will allow them to reach an audience without any idea who they are. This is why it’s important to remember that establishing a brand is very expensive. Once the market is set, the number of brand-conscious people drops dramatically.
Types of Marketing
- Branding
For a low price, 99designs is a good option for small businesses. It doesn’t include additional collateral, such as business cards and email templates. Small agencies can charge up to $5,000 for a single project, while large agencies can charge thousands of dollars for multiple assets. With a large agency, you’re getting the services of a marketing professional who will create all of your assets.
- Website
If you’re not ready to commit to a full-blown website, a simple website built on WordPress or a do-it-yourself platform such as Wix is a good option. For around $3,500, you can get a site that looks like your brand, while additional plugins, such as a shopping cart, can add up to approximately $2,000. If you want to put the money down, it can cost around $15,000 if you wish for all the gadgets and functions of the website.
- Social Media
On the inexpensive side, you can hire an intern or a college student for free or a small amount of money. You can hire a small agency for around $1,500 to $2,500 if you want something more. For a more central agency, you can expect to spend up to $4,000. The price is based on the number of platforms you use, the amount of PR integration, and your listening software.
- Advertising
You can tell your friends about your business and get them to spread the word about you with social media marketing, which can cost nothing. You can also target ads on relevant websites for around $500 a month. Full-service digital, print, and outdoor marketing can cost about $3,000.
- Content
You can also hire an intern for free, and on the cheap side, you can use a freelance platform such as Odesk.com. An agency can provide effective content for around $250 to $1,000 per piece.
- Events
You can network with other businesses and promote your brand simultaneously. For production teams, a small event can be as low as $5,000. Full-service events can reach millions of dollars.
There is no magic bullet to marketing success, but a few steps will help you build a brand that’s directed to spend your money wisely.