Developing a marketing plan is no easy work. There’s lots of research and inquiries that must be addressed before any strategy is executed. Once you have collected all of your data, developed an effective strategy, and have chosen effective distribution channels, your work is not over. The next step is to consider your budget. That means taking out a pen and outlining how much each marketing effort in your strategy will cost. You will also need to combine your budget with a realistic timeline in which you will execute these efforts.
This may sound like extra work but it’s worth investing your time. It’s also important to know the factors that can affect your budget spending. Some of these factors include:
- Competition and Clutter.
Some markets are heavily cluttered with competition. This can make it harder for a brand to stand out so you may need to spend more dollars on advertising and other marketing efforts to be seen (and heard!).
- Advertising Frequency.
Depending on your market and target segments, you may need to increase the repetition of your advertisements. This can help your target consumers become exposed to your marketing messages. It can also increase your budget.
- Product Substitutability.
Does your business sell commodity products like sugar or wheat? It may be harder to get your particular marketing messages across. A solution would be to advertise heavily to consumers to stand out against the competition. This will have a significant effect on your budget.
Determining a budget is difficult. Learning about the different factors that can affect can make the process a lot easier. Don’t forget to take these factors into consideration when you plan out your budget and timeline. Once you’ve determined your budget, you’ll have a clearer vision of your marketing objectives and even how to measure your marketing plan’s success.