Hi, I’ve seen so many entrepreneurs questioning about the marketing budget for their product. Defining the budget is really not so easy. It may vary product to product, location to location and on demographic basis. I’ll try to throw the light on every aspect of it.
First I’ll explain about the type of marketing. So, there are two types of marketing.
- Online Marketing
- Off line marketing
Each type of marketing has some channels. Lets start with Online Marketing. So, there are only 6 marketing channels in online marketing. There are 3 more marketing channels which are similar to the channels, we will discuss in the list of 6 marketing channels.
Online Marketing Channel:
- Google Adwords (SEM)
- Social Media (SMO)
- Content Marketing (CM)
- Email Marketing (EM)
- Affiliate Marketing (AM)
- Search engine optimization(SEO)
Another 3 channels are:
- Display Network
- SMS Marketing
- Video Ads
These 3 extra channels are actually covered in above mentioned channels.
Display network can be covered by Google Adwords, Content Marketing and Affiliate Marketing.
SMS Marketing can be added in Online Marketing. Although, None of the above mentioned channels cover it yet I wouldn’t like to add. I’ve seen so many customer getting frustrated due to this channel. It can be used for alert purpose but you can’t sell and selling is the only goal of marketing. Either you sell your service or a product but you sell every time you think about marketing.
Video Ads: Here I would like to Specify YouTube and some other video publishing website. You can cover it in Content Marketing and SEM.
Budget on Marketing: There are 3 conditions:
- When it comes to define the budget for Online Marketing, just analyse the existence of your user on Internet. If you are selling for internet savvy people then you must focus on Online Marketing first. If your proposed customers are internet savvy and spending at least 1 hr daily on internet then for Online Marketing and Off Line Marketing you can define the budget in the % of 60 and 40 respectively.
- If your proposed customers are not so much active on Internet then for Online Marketing and Off Line Marketing you can define the budget in the % of 30 and 70 respectively.
- The chance of this condition is very low. If your customers are not an internet savvy at all then don’t waste your money on Online Marketing Channels. But you must have at least your website.
The other type of Marketing is Off Line Marketing. It consist two type of media.
- Print media
- Electronic media
Print media: If your market is local and business rely on specific season and geography it is good to focus on Print media before electronic media. It’s cost effective and ROI is high (only in case of local and geographic specific business).
There are 8 channels of Print media.
- Wall painting
How to set budget efficiently:
To use your budget efficiently, you need to focus to to use your marketing channels efficiently. Efficiency of Marketing channels depends on the time of broadcasting of your message. If you can manage to convey your marketing message through various channels and at least 5 times in a day and for 4 days, you can see your targeted customer at your store/website on 5th day.