 | |  | | ||
|  Setting Marketing Strategies Analyzing the Business Climate Creating Your Market Identity Planning Your Advertising Coordinating Company and Salesperson Marketing Developing Public Relations Strategies Enhancing Customer Service | Planning Your Advertising How much you spend on advertising depends on your position in the market, the competition you face, and other factors. If you’re not sure how much you should spend on your advertising, take the One Minute Advertising Budget Test . Here are other ways to plan your advertising. 3 Ways to Plan Your Ad Budget No matter how you budget, there never seems to be enough marketing money to go around. But using one or a combination of these budgeting methods will help you implement your marketing plan. 1. Budgeting a percentage of sales: Provides a good budget starting point, but when sales decline, you have less money to solve your marketing problems. It’s also not a good approach if you’re trying to expand into a new area. 2. Budgeting according to the tasks you want to accomplish. Ties the amount you spend to the marketing mix activities you have developed. If good marketing objectives have been chosen, this plan offers the best chance of reaching them, but it doesn’t take affordability into account. 3. Budgeting based on what your competition spends. Should enable you to stay competitive in the market and allows you to respond rapidly to a competitor’s marketing campaign. However, basing your activities on those of others may restrict your own company’s growth potential. Adapted from The 1-Day Marketing Plan, Roman G. Heibing Jr. and Scott W. Carpenter, NTC Business Books, 1992 4 Factors that Will Influence Your Advertising Budget You’ll need to increase your advertising budget if you want to:
TIP: To determine where in the year to spend your advertising dollars, determine what percentage of your company’s sales occurred in each month. Then allocate approximately that percentage of your overall ad dollars to promotion in that month. —Newspaper Association of America, 2001, Newspaper Advertising Planbook Choosing Advertising Media > | |