Creating Marketing Budgets

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Every annual business review has a section where you will be asked to present a budget for your marketing activities for the next year. 

Most teams approach this with some fear because budget setting is a laborious exercise fraught with complex options:

  • Should you spend more in the first half or the second?
  • Should you spend more on performance marketing or brand marketing? 
  • Should you do a national-level campaign or stick to BTL? 
  • Should you invest in influencer campaigns or hire a brand ambassador? 

The questions are never-ending. 

It’s true – a lot of these high-level questions are difficult to answer in isolation. 

But there is a simpler approach. 

You can run several low-cost experiments with a portion of your current marketing budget.

Prove out concepts by running city/state-level campaigns before you go national. 

A single idea can have a large version and a small version. 

Before you ask for several crores for a national campaign, shoot a low-cost video this year and test it out in one state first. 

By testing out small ideas, you will: 

  • Learn what works and can be scaled up 
  • Learn what doesn’t work and should be discarded 
  • Gain valuable consumer feedback and insights through testing 
  • Establish conviction in the leadership team about marketing ideas

When it’s time for you to plan the budget for the next year, spend on what works while scaling back / stopping activities that don’t work. 

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