Startup Marketing Budget

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There are a thousand articles-recommendations for young entrepreneurs about what you need to focus on to create a successful business. Most of these materials are based on three key factors: team, product and demand in the market. Many believe that startups are killing product in demand. However, there is an opinion that an important killer cause is the cost of attracting a client - a key indicator in Internet marketing. The cost of attracting a client is formed from the costs of marketing the company, so today we will talk about a budget that entrepreneurs are ready to spend on promoting their product.
What is a marketing budget and why is it needed?

The marketing budget includes expenses for the study of markets, ensuring the competitiveness of the product, informing the client about the product (advertising, participation in exhibitions), organization of goods and sales network. Without marketing planning, the future development of the company is impossible.

There are two types of budget: strategic shopify website design  and annual. In the first case, the document is developed from three to five years, it contains long-term prospects, key strategies in the field and resources for the implementation of the task. The second document reflects the current state of affairs, the goals and strategies for the coming year.

Budget planning helps to predict income, costs and profits. Income includes price indicators and sales. Costs - costs in marketing activities, commodity promotion and production.
What is a marketing plan made of?

The marketing plan has a clear and logically built structure. His writing takes more of a day. It is necessary to collect detailed information about buyers, study the features of the market, determine the competitive advantages of the product and much more. Develop several promotion strategies, analyze and determine the benefits of each.

On average, the preparation of a marketing plan takes from one to three months. You will spend 50% of your time collecting information, 40% on analyzing and considering alternatives, and only 10% on drawing up the company’s marketing plan itself.
How to estimate the costs?



Be sure to divide the costs into two types: variable and fixed costs. The first includes the marketing budget for the withdrawal of the product, the second - the marketing budget as a whole.

Most companies believe that the marketing budget is associated with advertising and related actions that attract buyers. The same costs include the costs of marketing research, branding, and so on. However, the marketing budget also includes costs for product marketing, partner bonuses and discounts.