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4 Keys in determining an industrial marketing budget | Manufacturing Marketing

4 Keys in determining an industrial marketing budget

industrial marketing

Industrial marketing is an essential investment for your company’s long-term profitability and growth.

As industrial manufacturers evaluate and determine a marketing program for their business, one of the first questions that arises is “How much should I spend?” While there is no definite answer to that question, there are guidelines you can follow to determine an amount that makes sense for your company. 

You’ll often hear reference to a percentage-of-sales method, or a return-on-investment approach. While these options offer a great start, there are additional factors that need to be taken into consideration. Your budget should be driven by what you are trying to achieve, so developing an overall strategy is an integral part of the process.

Four Factors to consider when developing a marketing budget:

1. Strategy

Determine what you want to accomplish and create a plan to get you there. A strategic plan should take into account your target market; competitors, target audience, how you plan to market yourself and reach your goals, both short-term and long-term. Revisit your plan often, and track the results. You may have a proper level of funds allocated, but without strategic targeting, your program won’t be effective.

2. Business Development Stage

Where is your company in its development stage – start-up, growth, maturity, or decline? If your company is in a growth stage, just starting off or launching a new product, you may spend more compared to an established company.

 3. External Factors

Spend time evaluating your industry and the competition. How competitive is your industry? What is the economic environment of your industry? What methods are your top competitors using to reach their customers?

4. Timeframe

Any strategic plan must include time as a key factor. If there are imminent events on the horizon, such as major industry trade shows, government approvals, executive appearances, etc., these must be part of the overall schedule and strategy. Patience with the process is also a key aspect which should be built into the plan. A statistic which is regularly quoted is plan 8-12 “touches” before your industrial prospect is ready to engage with your sales process.

Marketing is essential to the success of your industrial manufacturing business. Taking time to create a strategic plan with a realistic budget is time well spent. Remember, you could have the best industrial product in the world, but if your customers can’t find you, you won’t succeed.

What factors will you incorporate into your budgeting process?

photo credit: peasap via photopin cc

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