A sMArT wAy To Build A MArkETiNG
BudGET
as exhibiting at tradeshows and media buys, with guerilla
tactics such as a customer road show, email marketing,
public relations, webinars, speaking engagements, and
rEady, aim, firE!
directory listings. The goal is consistency and variability.
Jonathan ward
For instance, if you commit to attending a show as an
exhibitor, you should make a commitment to going every
There are many approaches to building your marketing budget.
year. Because if you attend one year, and not the next,
Marketing consultants would say 3-5% of gross revenues. Your
you could be inadvertently providing your competitors with
accountant would say to increase your marketing budget by 3%
ammunition that you are pulling out of a given market –
every year – or often a decrease! So, what’s best way to arrive at a
even if untrue! Gaining market share in an industry simply
marketing plan and budget? It’s simple. Your marketing expenditure
takes time, consistency, and unwavering commitment.
needs to align with your corporate objectives, bearing in mind your
brand recognition and product marketing strategy. Here is a straight-
When you’re done planning for all markets you wish to
forward approach to build a budget that is appropriate for your
penetrate; now you can carve out or cut back efforts across
company’s size and goals.
the board in order to get the budget down to what you can
actually afford. If after cutting back you still are not within
1. READY: Make sure you have the resources and the right reasons
your budget range, you might need to eliminate new (and
for marketing to a particular segment – often times, companies make
more risky/uncertain) markets you hoped to penetrate. In
the mistake of spreading their marketing budget too thinly across
other words, if you do not have enough resources from your
many markets (healthcare, universities, etc,). Start by listing the core
core business to have a real impact in a new market, you
markets in which your company or particular product has had success.
are better served to focus on your core business until you
Be careful of the assumption that if your competitor is having success
can fund a significant launch in a new market. Customers
in a given market, your company will too. If you want to duplicate a
expect consistency, so try not to spend a ton on marketing
competitor’s success, you’re better off defining markets in which you
efforts in a good year, and then next to nothing the next,
can establish a leadership position by either being first to market, or
as your marketing spend will start to become a reflection of
by simply identifying products that fit customer needs better in a given
your fiscal success.
market. For instance, valet parking is a natural for the hotel industry.
However, because it’s so easily identifiable, you are guaranteed to
In addition to your tactical marketing plan, I recommend
have the most competition. Creative strategists would look to a new
that you build a communications map highlighting the
market that could really use a valet management solution that no one
messages you plan to deliver with each execution – much
had ever targeted.
like an outline – spread out over time. For my clients, I
try to establish the 3-4 key things I want my customers to
2 AIM: Establishing a marketing budget is started through
know about my company and/or products by the end of
introspection. Define the markets in which you’re already established
the year or campaign, and then use individual executions
and analyze the realistic viability of increasing market share. If you
to drive each point home. This can really help when writing
do not think you can significantly increase success in a given market
and developing outreach materials of all kinds, because
segment, a maintenance strategy is best – supported by continued
you realize you do not have to say everything about your
sales efforts. Then, honestly identify your company’s and/or product’s
company in every execution. For instance, one advertisement
core benefits. Now review what your customers and prospects already
could focus on your great product support, the next on
know about your company within a given market or industry. Establish
new products, and the final on a customer success story.
what you would like everyone to know about your company or given
Laid out over time, your prospects will establish an overall
product. The gap between what customers know about your company
picture that includes your key products, your ability to
and its strengths (your brand), and what you wish everyone knew
service your clients, and the proven ability of your products
is called your branding gap. The gap is widest for new industries
to achieve customer success. One execution cannot paint
you’re trying to penetrate and/or new products you’re launching, and
this big a picture, but 3-4 messages, spread over time, can
smallest for markets in which you’ve already had success. The wider
really build a solid and fairly complex brand identity that
the gap the more resources (marketing dollars) will be required.
will really help your salespeople bring in business.
Jonathan Ward, President, Onward Marketing, has over 18 years
of marketing experience in the high-tech and parking industry,
having consulted with companies such as Microsoft, General
3 FIRE! Pretend you have unlimited resources (within reason) to build
Electric, Compaq, 3Com, and many others. Jonathan has been
a perfect marketing plan, and then scale back to fit your budget working been a marketing consultant and advertising agency
goals. What I often do, is build a marketing plan around each market
owner since 1994, and has just launched his third advertising
agency, www.onwardmarketing.com. He can be reached at jward@
I am trying to penetrate. Start with the markets in which you know you
onwardmarketing.com
need to have a strong presence. Be sure to mix costly efforts, such
11 marketingtimes
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