Marketing Diet Budget
February 4, 2016
CONSUME CREATIVELY
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The rumor on the internet is 95% of diets fail and most small businesses fail to have a marketing budget. Strangely, the reasons diets fail are eerily close to the reasons businesses fail in their marketing. Local experts, Erica Pefferman, President of The Business Times Company and Mark Mils of Cumulus Media tell us why.
Youโre overestimating your activities and calories burned.
Itโs unrealistic to lose 20 lbs in a day and itโs just as unrealistic to grow your company by 50% without adjusting your marketing budget. โYour goals and your budget need to be inline,โ explained Erica.โIf you have aggressive goals and the same budget as last year the campaign wonโt be a success.โ
Mark agrees, โThere is a minimum on any medium, be it traditional or new, and if you canโt afford to reach the minimum, then you need to rethink the entire plan. Donโt spend a little bit just to spend a little bit.โ
Expectations are probably the most important conversation an advertiser and a consultant can have. There may not be a specific ROI but there will be an expectation of some things happening. Itโs important everyone is on the same page.
You donโt have a diet plan.
Fads come and go but the principle remains the same: plan to eat right, exercise more, lose weight. Your dietary plan is based on your caloric burn. The same applies to marketing: plan your marketing, complete your activities, increase sales. Your marketing budget is based on how fast you want to grow your company.
โSome businesses plan for 3-5% of gross sales as their advertising budget while others invest far more. A commonly made mistake is to take 5% of your current revenue. The budget needs to be 5% of where you want to be, not where you are now,โadvised Erica.
Mark often deals with a 3-12% advertising budget based on total revenue. He also sees business owners look at the income and expenses of running the business and take a percentage of the remainder for their advertising budget. โThereโs no magic specific formula for budgeting. In fact if a business has a budget theyโre 4-5 steps ahead of their competitors already,โ shared Mark.
Your diet is too strict and you end up bingeing on forbidden foods.
Seems like everyone starts their diet on the same day, tomorrow, because nobody wants to give anything up, they want it all, while successful dieters tackle weight loss in stages, establishing a permanent lifestyle change one glass of water at a time. Erica affirmed, โThe biggest problem is businesses try to do too many things with too little budget. Itโs easy to do to little or too much. Concentrate and dominate.โ
Mark helps people understand the Bucket Theory, โYou have several different buckets representing advertising opportunities. Pick a few buckets and fill them as full you can instead of putting a little in each.โ
Your marketing plan will vary based on your budget. โIf you donโt have very much money to spend you may have to invest your time and choose marketing activities you can do on your own,โ explained Erica. โIf you have money but not much time to invest you can look at mediums that require a bigger monetary investment but little time. If you canโt make equation work either way your goals may not be realistic.โ
Youโre too impatient for results from your diet.
Giving up dessert today doesnโt mean youโll fit into your college pants tomorrow. In the marketing world, โRunning an ad and expecting customers walk through the door immediately isnโt a realistic expectation,โ explained Mark.
โThe most important part of marketing is to be consistent. Not advertising for just for a month or 3 months,โ clarified Mark. โThe best advertisers run 52 weeks per year, theyโre out there as frequently as their budget allows and doing it consistently.โ
Erica related a โsocial experimentโ conducted by a past client of hers who intentionally canceled all of his traditional marketing. โHe did well for a while but then sales started to drop off and he realized he needed to bring it back. But he had to build sales back up to where it was before, it didnโt just jump back as soon as he started advertising again,โ Erica shared.
Youโre not tracking your progress.
A Fitbit is a minimal investment to track your fitness goals in comparison to the money youโre spending in your businesses marketing budget. Yet many businesses donโt track their marketing.
When tracking a campaign’s success, Mark says setting expectations is the most important conversation an advertiser and a client can have. โEven if there is not a specific ROI there should be an expectation of things happening. Itโs important everyone is on the same page. Itโs a marathon not a sprint,โ offered Mark.
Erica is adamant about tracking, โIf youโre not tracking it, youโre wasting it,โ she emphasized.
Donโt be a statistic, tackle your goals by setting a realistic marketing plan and budget. Focus on a few core mediums that meet your target market and do them well. Then sit back and work your plan, track, tweak and grow.
Who Manifested This Madness?
This fabulous human, that's who.
Monica Maye Pitts
Monica is the creative force and founder of MayeCreate. She has a Bachelor of Science in Agriculture with an emphasis in Economics, Education and Plant Science from the University of Missouri. Monica possesses a rare combination of design savvy and technological know-how. Her clients know this quite well. Her passion for making friends and helping businesses grow gives her the skills she needs to make sure that each client, or friend, gets the attention and service he or she deserves.