Marketing is an essential part of your business growth. Your industry exposure creates awareness in the local market which eventually generates fresh leads. Your product buying circle moves smoothly when new customer get converted. It is advisable to have marketing budget on the basis of your outcome. Proper planning and execution strategy will give you an insight of the final outcome.
Note down everything on the paper to visualise the conversion funnel. The common method organization follows is they allocate 20% to annual marketing budget and other 20% assigned to sales.
I have seen companies spend more on sales management than marketing. They forget that getting a new customer is also important for the business growth. Your marketing efforts are the backbone of your business.
Business will sustain in the competitive industry when your marketing team is strong. The new client runs the business, the rest of process can be managed by having good people in-house. Marketing is the only department where you need continuity in an upgrade. The nature of the industry changes as time past. New competitors enter the market to lead the industry. Your marketing team must have scope to bit the competition. If you allocate small budget and ask them to fight with the big brands then it is not possible for them.
In some cases, marketing efforts work best for small industries but that need creative actions to make a buzz in your industry.
Here are the best practices to run your marketing campaign and get most out of it.
1) Budget Allocation & Distribution:
The first step in the marketing is a budget allocation and distribution throughout the year. Your marketing budget should be distributed equally. Each month will have some budget allocated for the marketing. Use the money to run the certain marketing campaign and monitor the progress. The systematic investment will assure that you will not run out of the fund. Your marketing effort will have consistency in doing promotion of your business.
The budget allocation and distribution is essential to step into the marketing success. Once it is done, the next process is monitoring the ROI of your investment.
The best practice is tracking the outcome of each marketing efforts. Your marketing campaign should have certain goals attach to it. Your campaign will be successful if you reach the chosen goal in the given period. Generally, marketing team complains about the low fund allocation. In some cases it is true, marketing requires a big budget to tackle the need, so to make their efforts flourish you can ask them to run a pilot campaign which will be a test campaign to understand the depth of the industry. After execution, if the number comes positive then you can assign more budget to them to make the campaign bigger. We will discuss this in detail in the next point.
Your marketing team will have many ideas that they might want to execute. You can run each campaign at the time and see how your allocated budget helps you to generate more revenue.
2) Never design yearly marketing campaign:
The marketing industry is continuously changing. The things which are working today might not work in the future. so it would be better you create a monthly plan and execute it on the monthly basis. Your marketing team should be flexible enough to accept the new changes and create something new to get into the current trend. The buzz marketing is the example of the new trend. You generally see there is always something new coming every month that creates a buzz in the marketing. Social cause, donation campaign, and relief fund are some of the marketing campaigns you see on the social media sites.
Your marketing team must have knowledge of getting your brand visible in the recent event to grab the opportunity. This is the new trend in the marketing today.
The problem with creating yearly marketing plan is you will not have much scope to make any changes to the current plan. Even you will unable to decide what is not working in your marketing efforts. So it is better you have a specific goal attached to the monthly marketing plan and execute the plan accordingly. If something is not working then you can immediately change the plan and use that budget to some other marketing techniques. It gives the ability to swipe your marketing plan to another marketing strategy.
3) New campaign should be pilot campaign:
Always have a pilot campaign to understand how much fund and efforts you need to pour in your marketing campaign. There are several strategies available in the marketing. Choose one of them and run test campaign to get some basic outcome. The data you receive will help you to create a base and according to the received numbers, you can visualize the future outcome of particular marketing channel.
If you pour complete marketing fund in one short then you will not have any idea how it will go. The outcome will not be predicted. If the marketing did not work according to the plan then you will exhaust your budget in short run. The ROI will not be positive and your survival will become difficult. so it is better you keep track of each penny used in the marketing.
In addition, Your marketing team will not be sure how the campaign will end. They will be creating a campaign by looking at the other companies who claim they have done the same thing and got the result. So they will be not 100% sure about the outcome. The pilot campaign will not give 100% accuracy but it gives you early prediction how to manage your budget and efforts.
4) The decision should be based on data analysis:
All your decision should be strictly connected to the data you collect from the marketing campaign. The data-driven marketing campaign gives you the perspective of how you can make progress in your efforts. Recording data in the spreadsheet is the best way to keep all the record in front of you. Ask your team to keep the data up to date.
Whenever you are having the meeting with your team you can use the spreadsheet to understand the progress. The accuracy of the data management is important. Have two layers of the verification process to avoid any misleading input in the data management. Human errors is another factor that may cause a big loss for the business. so have two levels of verification when it comes to data management.
It also helps your team to keep themselves on track in the real time. By just looking at the data you can judge the performance of the campaign. You can keep your employees effective and generate a good return on your investment.
5) Having right team in place:
Hiring right people in the marketing team is very important for organizational growth. The person who is working for you must know what their job is in the organization. They should have deep knowledge of their field. Marketing employee should be creative enough to think something out of the box.
The right people will grow your company faster. so when you are hiring people in the marketing team. Have clarity in the selection of the team members. You must know who will play what role. Your expectation must be clear when you are hiring the person for the role. Your marketing budget is also connected to the people you hire. The bad candidate will make a loss for your organization.
The marketing budget allocation and monitoring is the continues process. Your focus should be managing the execution of efforts and fund. The things should move in the right direction to make your company succeed.
Let me know how you manage your marketing budget for your organization.