Marketing and Sales Lecture M2 Week 7 PDF

Marketing and sales lecture M2 week 7 donderdag 16 januari 2025 18:18 Not from the book A) Marketing Budget Basics Definition: A marketing budget is the total amount allocated to spend on marketing strategies Purpose: Closely linked to marketing objectives, helps track funds an...

Marketing and sales lecture M2 week 7 donderdag 16 januari 2025 18:18 Not from the book A) Marketing Budget Basics Definition: A marketing budget is the total amount allocated to spend on marketing strategies Purpose: Closely linked to marketing objectives, helps track funds and measure campaign success Benefits: Helps fulfill objectives, allocate funds in advance, prove value to executives, justify investments, compare progress year-over-year, calculate Marketing Return on Investment (MROI) Why do companies need a marketing budget? Helps to fulfil marketing objectives Allocate funds for marketing activities months in advance Prove the value of marketing projects to company executives Provide reasoning for allotted budget for the next year Justify why specific marketing activities are worth investing in Compare progress year-on-year and allocate more towards the winners Calculate the Marketing Return on Investment (MROI) Invest in the right marketing activities B) Marketing Budget Process Seven steps in creating a marketing budget: Step 1: Deciding Marketing Budget Allocation Revenue-based: Set aside 6.5-8.5% of revenue (10-12% for newer businesses) Goal-Driven: Set goals first, then plan budget to achieve them Competition-Matching: Base budget on competitors' tactics Top-Down: Management sets figure, marketing stays within parameters Step 2: Identifying Marketing Goals & Estimating Costs Goals should be time-bound, measurable, practical, and achievable Rank goals by importance Estimate costs for each goal Examples: Build brand awareness (metric: website traffic, clicked links, ad impressions) Target new customers (metric: new leads) Increase sales (metric: conversions) Calculate estimated spend (e.g., Goal x Cost per unit = Estimated Spend) Step 3: Identifying Target Market Create customer personas Determine who they are, where and how to reach them Identify most effective communication methods Step 4: Research Competition Identify well-performing competitors Analyze their current ads and marketing strategies Estimate their marketing budget Step 5: Choose which IMC (Integrated Marketing Communication) Tools to use Align with budget allocation, marketing goals, and target audience Measure cost, reach, and effectiveness of each tool Examples: Digital marketing, social media, content marketing, email marketing, etc. Step 6: Calculate Marketing ROI for each tool Formula: [((number of leads x lead-to-customer rate x average sales price) - cost or ad spend) ÷ cost or ad spend] x 100 Factors: Number of leads Lead-to-customer rate Average sales price Cost or ad spend Step 7: Evaluate which is the most effective tool Compare ROI of each tool Allocate more budget to tools with highest ROI Adjust strategy based on performance This process helps create a comprehensive, data-driven marketing budget aligned with company goals and target audience.