Marketing is the effort made at promoting and sell products or services. In every business, creating a budget plan is important but creating a marketing budget plan is more important. Read more about BusinessA budget is a statement of income and expenditures of an individual, family, business, or nation over a period of time. A marketing budget is the statement of income and expenditure directed to marketing over a period of time.The importance of having a marketing budget can not be overemphasized. A budget is synonymous with a plan. There is a popular saying, “He who fails to plan, plans to fail.” In order not to fail, a business has to create its marketing budget. The importance of promoting goods and services can not be overlooked as marketing wields the power to a successful business which brings us to,
Steps To Creating A Marketing Budget
Have A Target Audience
Not all goods and services are meant for the public, some of these goods and services have specific consumers. For example, a barber. A barber has business only with those who are interested in cutting their hair. Only those interested will employ the services of a barber which means his marketing strategies are to be directed to only this set of people who requires his services. A marketer or business owner who has been able to discover his audience will have no problem in drafting and implementing a marketing budget plan. Knowing your target audience involves knowing them numerically as well. You should always have a proper estimated number of them in order not to run at a loss.
Know Your Costs
Having a target audience for a marketer is not enough, he/she must know the costs of promoting/marketing his/her products to them. Some promotional strategies must be used to reach them. Most of these strategies do not come without a cost. A marketer must be aware and ready to take care of these costs.Sign up to the Connect Nigeria daily newsletter
Know Your Income Rate
A budget is not a budget without income. No one would like to venture into a business and not make profits. However, don’t be too cautious about making income and make less effort at spending, for a product or service to gain recognition and customers, time and money must be invested.
Know Your Consumers Psychologically
Knowing your consumers psychologically involves knowing what they think and how their minds work. To be a marketer, you must think and act like the consumer. Thinking and acting like the consumer will help you know what type of marketing you should go for and this in itself will have you make a wise budget plan.
Be Prudent In Spending
I understand that as marketers, you have goals to reach a particular target. I also understand the enthusiasm that comes with having huge returns at first. However, we need to be careful not to get carried away by this excitement as it can make one spend without rational calculations hoping there’d always be huge returns. As marketers/promoters, a budget plan helped to reduce the risks of loss so it needs to be adopted by all. Featured Image Source: Residence StyleGot a suggestion? Contact us: editor@connectnigeria.com
