Q & A on Marketing

Information on marketing that you can use.

Q. – What source can I go to that will tell me how to establish the right marketing budget?

A. – There are numerous sources including the “Marketing Manager’s Handbook” but the best way is to sort of triangulate. First of all, what are your current costs. You should be able to calculate fairly closely your cost of sales and marketing. Sales persons’ salaries and expenses, percentage of overhead allotted  to the marketing department. Printing and mailing costs for promotion and customer interaction. Advertising and promotion, including displays and trade show expenses.

Once you have established your costs, you need only determine the percentage of sales that your marketing budget represents, then determine your next year’s goals, then add the increased percentage based on your target sales increase to this year’s budget.   You will want to attempt to learn the estimated budgets for the coming year for your competitors before finalizing your own budget.