Tweet

A Customer Centric Marketing Budget!

Written by: Joe Dager

Article Overview: Take your marketing dollars and define what you are willing to spend to get a customer to know you, like you, trust you, etc. The easiest way to start is to use your past six months. I think it might be quite alarming to see where the money has been spent.

A Customer Centric Marketing Budget!

How do you decide on your marketing budget?

1. Set preliminary budget based on tasks decided upon.

2. Estimate competitors' budget and adjust accordingly.

3. Prepare budget document with rationale of expenses.

4. Use percentage of Sales

The most common method is using percentage of sales. However, what happens if sales go down? The problem you are trying to correct already has less money to begin with. However, it is used time and time again. When using that method, I think many look simply at the industry norm, which is a certain percentage. Take that percentage times your annual revenue. For example: Annual sales = $1,000,000

Marketing % = 7%

Annual Exp = $70,000

Monthly Exp = $5,800

After that simply take that number and split it up between, what we call the Lead Generation trio: Advertising, PR and Referrals. Even that is probably not that true, because we seldom count referral and PR into our budget. I typically see a calendar with the major promotions scheduled out for about 90 to 180 days and the next 30 to 60 days completed with the smaller promotions. There will be a mix of radio, print, TV, direct mail, displays, etc., most directed at gaining new customers. In recent years, there have been better efforts at extending into our existing customers and tailoring efforts in maintaining them. Further steps have been made towards specific referrals programs developed. They have proven to be highly successful. I would like to take you a step further.

In previous conversations, I have alluded to the Duct Tape Marketing method of Know, Like, Trust, etc and in fact developed my Lean Marketing House with this column being the pillars of the house. But what if you took your budget and developed around this pillar. Take your marketing dollars and define what you are willing to spend to get a customer to know you, like you, trust you, etc. The easiest way to start is to use your past six months. I think it might be quite alarming to see where the money has been spent.

Do you think the same marketing dollars should be spent on getting to know a customer instead of trying to get someone to repeat or refer? Once, you capture a person, learn how many dollars are being spent trying to get them to like and trust you. Or do you leave it to chance?

The steps I use in the Markeitng Funnel is outlined below:

Know - Like - Trust - Try - Buy - Repeat - Refer

Related Articles
  Sales And Marketing Is All About "You"
  Why You Need Empathy to Be an Innovator
  Do You Put Your Customers First?
  Are You Customer Centric?
  Customer Centricity: Where Are We Now?

Article Tags: marketing budget, money, pr, referrals



Related Forum Posts
Re: MLM Marketing, youtube, and buzzirk mobile. - I have experience with MLM too. My initial reaction to the business was "snake-oil salesman" but once I got to understand the "overall business model" I am now an advocate to it. MLM (Multi-Level Marketing) is also known as Network Marketing. I realized an MLM business is no different than any other business. One needs to focus on both words "Network" and "Marketing" and give both equal respect. Some people focus heavily on the Networking part but forget "Marketing". I've started to use Building on a Budget and Magnetic Sponsoring concepts in my NM business and have found that people don't get involved so much because of the product but more because of what you bring to the table as far as marketing systems and support. I have both products listed in my signature. you don't have to buy it as the link to the free videos itself provides you a good understanding of what is required to position yourself as my above paragraph. If you do plan on purchasing it I can tell you that the measly $40 will open your eyes BUT your upline will not be too happy (atleast in the short term) beacuse the system is not duplicateable. I wrote this post as a polar post to Bulmer's reply as I have exhausted the friends and family networking and realized i never really focused on marketing. My leads now are more qualified and open to hearing about my opportunity than the other way around. my 2 cents if you plan on growing an MLM or Networking Marketing business.
Re: Two Useful Books To Help You Focus On The CLIENT - Hi David, To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience". Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.
Wearing different hats in Business - I have a business that produces beautiful custom rugs for home and business environments. Different hats that I'm wearing... Rug Fabrication - 10 [i:21cr28m8](partially outsourced to an outfit here in the US)[/i:21cr28m8] Customer Service / Sales - 8-10 Bookkeeping - 1 Marketing - 6 Website development - 5 [i:21cr28m8](mainly outsourced)[/i:21cr28m8] SEO, SEM - 6-8 Accounting - [i:21cr28m8](outsourced)[/i:21cr28m8]
Re: What is your Business? - We are running a Online Marketing Firm and we have some good clients to which we are offering a complete Digital Marketing strategy like Search, Mobile Marketing, Branding and Design. I think in Online Marketing company online presence can be a wining factor for the success of the company.
Re: Let’s talk about the ways of marketing your products, servic - I agree with some of the others who responded it depends on what your selling... but to answer your questions here are some of the methods I use. Forum Marketing Yahoo Answers (I need to use more of) SEO (Search Engine Optimization) Bum Marketing or Article marketing P-P-C (Pay Per Click) Marketing Online Directories Hope this helps.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Listen to Your Inner Melody

How to Set Sales Goals that Work

Small Business Internet Marketing

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.