Marketing budget is one of the most difficult tasks that managers of a firm have to deal with. The marketing budget includes: costs for market research (market research, medium and long-term), for ensuring the competitiveness of goods, for information communication with customers (advertising, sales promotion, participation in exhibitions and fairs, etc.), for organizing goods circulation and a sales network. The funds for the listed activities are drawn from profits, which, without such costs, would have been much larger in mass, however, on the other hand, without marketing costs, it is unlikely modern conditions sell enough units to recoup the costs of research work and everything else related to its production, not to mention making a profit. Therefore, the allocation of funds for marketing is a solution to an optimization problem with a large number of variables, the influence of which is usually not amenable to accurate accounting, that is, a typically predictive problem. Moreover, the influence of variables is, as a rule, nonlinear and itself must be determined empirically. That is why tradition, the experience of top managers of the firm and the analysis of the marketing costs of competing firms play such an important role in determining the marketing budget.

To estimate the order of magnitude of marketing spending, you can use the profit equation:

P = SW-,

where P is the profit, S is the sales volume in pieces, W- list price, О - transportation, commission and other expenses for the sale of 1 unit of goods, A- the cost of producing 1 unit of goods, not related to marketing, but depending on the volume of production, F- fixed production costs, not related to marketing and independent of the volume of production and sales, R

If we assume that when exporting finished products, the usual profit on capital invested in production, trade and marketing is 10%, this equation takes the following form

R + D = 0.91SW -.

However, the difficulty lies in the fact that the sales volume S nonlinearly (and with some uncertainty) depends on R and D, although this dependence can be determined by the methods of regression analysis (a priori it can be argued that for each firm the regression equation is strictly individual).

Since the profit rate depends on the market share occupied by the firm (with a share of less than 10%, this rate is approximately 11% for companies that produce personal items, and 5% for industrial goods, with 20-30% of the market, the rate rises, respectively, to 12 and 16% depending on the type of goods, with 40% of the market - up to 22 and 27%; and with a market share of more than 40% - up to 25 and 30%, respectively) from the profit equation it follows that the cost of advertising or promotion of goods should increase by as the firm is established in the market.

A.P. Durovich notes that various methods of determining the marketing budget are used in marketing practice. However, it is obvious that none of them is universal and perfect. Therefore, we will restrict ourselves to considering the most common ones.

The most common methods for determining your marketing budget are:

Funding "from opportunities";

Fixed interest method;

Competitor match method;

Maximum expense method;

Method based on goals and objectives;

Method of accounting for the marketing program

Funding "from opportunities" is carried out on the principle of "how much you can allocate." This method is used by firms focused on production rather than marketing. The latter usually accounts for only what remains after satisfying the demands of production as such (if something remains). The only, but very doubtful, advantage of the method is the absence of any serious conflicts with production units due to their unconditional priority. The imperfection of the method is obvious at first glance. First of all, this is the absolute arbitrariness of allocating specific amounts, their unpredictability from year to year and, as a consequence, the impossibility of developing long-term marketing programs, planning the marketing complex and all the company's activities.

Fixed interest method based on the deduction of a certain share of the previous or estimated sales volume. For example, a value of 3% of the sales volume of the previous year is taken. This method is quite simple and is often used in practice. However, it is also the least logical, since it makes the cause (marketing) dependent on the effect (sales volume). When focusing on the results of the completed period, the development of marketing becomes possible only on condition of its previous successes. If there is a market failure and the volume of sales decreases, then the amount of deductions for marketing also decreases proportionally. The firm finds itself at an impasse.

Match to competitor method involves taking into account the practice and level of marketing costs of competing firms, adjusted for the ratio of forces and market share. For its implementation, a number of conditions must be met. First, you should select a competitor that is close in resources, interests and market position. Secondly, it is required to at least roughly determine the size of its marketing budget, which is very difficult. If a competitor's advertising and sales promotion efforts are visible in the market and can be at least roughly established, then the costs of marketing research and product development are difficult to estimate.

This method of developing a marketing budget allows for the use of collective experience, but does not differ in sustainable optimality. There is no guarantee that the competitor chosen by the firm to emulate is acting wisely enough, rationally forming his budget, and in general proceeds from those goals that we unwittingly attributed to him.

Maximum expense method suggests that as much money as possible should be spent on marketing. For all the apparent "progressiveness" of this approach, its weakness is in the neglect of ways to optimize costs. Moreover, given the sufficiently long time interval between the implementation of marketing costs and the achievement of results, the use of this method can too quickly lead the company to difficult financial difficulties and, as a result, to a departure from the marketing concept.

Method based on goals and objectives requires a coherent system of clearly formulated goals and objectives. The essence of the method comes down to calculating the costs that have to be made within the framework of individual marketing activities that ensure the achievement of the corresponding goals. Therefore, in such cases, a revision of the goals is often required. In general, the implementation of specific calculations using this method is quite difficult and time-consuming. Maybe that's why only a few companies turn to him.

Method of accounting for the marketing program involves careful consideration of the costs of achieving specific goals, but not by themselves, but in comparison with the costs for other possible combinations of marketing tools, i.e. when implementing other "chains" of marketing strategy alternatives.

Taking into account the disadvantages inherent in each of the above methods separately, it should be noted that the most justified will be a budget based on the application of an integrated approach using individual elements of all considered techniques. This method of budgeting can be based, for example, on focusing on the implementation of the task, taking into account the actions of competitors and the funds that the company can allocate for marketing.

When determining the budget, it is necessary not only to determine the total costs, but also to distribute them both in the main areas of marketing activities (marketing research, product development, advertising, sales promotion, etc.), and within them.

Marketing planning

Goals and objectives of planning in marketing

The practice of domestic business shows that many firms are still working without officially adopted plans. In most new firms, managers are so busy that they simply don't have time to plan. In small firms that have accumulated some work experience, managers, intuitively feeling the need for a plan, at the same time believe that formal planning can be dispensed with, and therefore it cannot be of significant importance. They don't want to waste time preparing a written plan. According to them, the market situation is changing too rapidly for the plan to be of any use, and in the end it will simply gather dust on the shelf. It is for these and a number of other reasons that many firms do not use formal planning. Large firms assess the importance of a marketing plan in a completely different way.

But formal marketing planning has a number of benefits. Specifically, M. Branch lists these benefits in the following order:

1. Planning encourages leaders to think ahead.

2. It leads to better coordination of the efforts undertaken by the firm.

3. It leads to the establishment of performance indicators for subsequent monitoring.

4. It forces the firm to define its objectives and policies more clearly.

5. Planning makes the firm more prepared for sudden changes.

Any planning starts with strategic planning... The process of strategic planning consists of developing an enterprise program, formulating its tasks and goals, analyzing the economic portfolio and long-term planning of the organization's development. An enterprise mission statement should be market-oriented, realistic, motivating, specific in the sense that it aims the firm to take advantage of the most promising opportunities available.

Taking into account the foregoing, strategic planning requires an assessment of each of the production facilities that make up the enterprise in order to draw a conclusion about the expediency of their expansion, preservation, termination or use of the achievements of their activities.

To ensure firm growth, strategic planning requires identifying market opportunities in areas where the firm needs to have a clear competitive advantage. Such opportunities can be identified on the paths of intensive growth on the scale of modern market activities, such as deeper market penetration, expanding the boundaries of one's market or improving the product, as well as on the paths of integration growth within the industry and on the paths of diversified growth.

“After the development of general strategic plans, - says F. Kotler, - each production of the enterprise will have to develop its own marketing plans for goods, market brands”. The main sections of the marketing plan are: a summary of the benchmarks, a statement of the current marketing situation, a list of hazards and opportunities, a list of tasks and problems, a statement of marketing strategies, action programs, budgets and control procedures.

A flexible planning system removes the binding to planning periods and can change activities quite arbitrarily as changes occur in the market and in the enterprise itself. It allows you to flexibly respond to market fluctuations. The lack of a marketing plan deprives the company of clear, stable targets.

The strategic plan of the enterprise determines what kind of industries it will be engaged in, and set out the tasks of these industries. Now for each of them it is necessary to develop their own detailed plans. If the production includes several assortment groups, several goods, brands and markets, a separate plan should be developed for each of these positions. That is why we are faced with production plans, product release plans, branded product release plans and marketing plans. All these plans come together in one - "marketing plan".

Strategic planning must meet the specific needs of both marketing and other functional areas. This is not always easy, as the goals and needs of different functional units differ.

The orientation of the various functional areas is as follows:

1. Marketing - attracting and retaining a loyal group of consumers through a unique combination of product, sales, promotion and price.

2. Production- making full use of production capabilities, reducing relative production costs and maximizing quality control.

3. Finance - operating within the established budget, focusing on profitable products, controlling credit and minimizing the cost of loans for the company.

4. Accounting - reporting standardization, careful detailing of costs, standardization of transactions.

5. Technical Services - developing and adhering to specific specifications, limiting the number of models and variants, focusing on quality improvement.

6. Supply- the purchase of materials in large homogeneous lots at low prices and the maintenance of small stocks.

7. Legal services- ensuring the protection of the strategy from the government, competitors, participants in distribution channels and consumers.

Top management must ensure that each functional unit wants to balance points of view in the joint decision-making process and participate in this process. Friction between services is inevitable, but it can be reduced by: openly discussing differences and stimulating contacts between different departments; look for people who bring technical and marketing knowledge together; create cross-functional working groups, committees and management development programs; develop the goals of each department, taking into account the tasks of other services (for example, to evaluate the heads of marketing departments not by exceeding sales targets, but by the accuracy of forecasts). This is reasonable enough. Suffice it to say that in the practice of foreign firms, deviations in the accuracy of the forecast in one direction or another by more than 5-10% testifies to the unprofessional nature of the marketer.

Strategic planning is a management process of achieving and maintaining a stable balance of goals, capabilities and resources of the organization and new market opportunities.

The environment within which marketing is carried out includes factors under the control of the top management of the enterprise and factors under the control of marketing. It is useful to use a sequential strategic planning process to coordinate them, to create a basis for decision-making. From a marketing perspective, a strategic plan specifies what marketing actions the firm should take, why they are needed, who is responsible for implementing them, where they will be undertaken and how they will be completed. They also determine the current position of the firm, its future orientation and resource allocation.

Strategic planning in marketing has a number of specific features:

1. The strategic plan is built on the basis of strategic business units, with the obligatory condition of their interaction. It relies on data from marketing information systems, marketing research, sales departments, accounting.

2. Uses specific analysis, performance analysis and planned resource allocation models, and the organization's ability to design, maintain and defend its market position. The marketing plan takes into account both the short-term and long-term consequences of decisions.

3. Combines environmental analysis and contingency plans to facilitate the process of adapting to emerging changes.

Strategic planning in marketing allows you to solve a number of problems: to determine the directions for the company's activities, which will allow it to better understand the structure of marketing research, consumer research, product planning, promotion and sales, as well as price planning; provide each division in the firm with clear goals that are linked to the overall objectives of the company; stimulate coordination of efforts of various functional units; allows the firm to assess its strengths and weaknesses in terms of competitors, opportunities and threats in the environment; identify alternative actions or combinations of actions that the organization can take; forms the organizational basis for resource allocation; demonstrates the importance of applying procedures for assessing the activities of local divisions of the firm in their relationship.

Marketing planning solves the following main tasks:

1. Determines the goals, basic principles and criteria for evaluating the planning process itself (for example, differentiation of food products depending on the selected market segments, comprehensive planning of market strategy, determination of the amount and timing of financing depending on marketing goals).

2. Sets the structure and reserves of plans, their interconnection (for example, links plans for the sale of manufactured food products for individual market segments, implements a comprehensive market strategy, sales and production activities of regional offices and branches).

3. Establishes the initial data for planning (the state and prospects of the market development, the existing and future needs of the end users of the products of the food company, the forecast of changes in the commodity structure of the markets).

4. Determines the general organization of the process and the planning framework (the level of competence and responsibility of managers, the rights and obligations of organizational and structural divisions of the enterprise).

The structure and types of marketing plans

Modern business plans of domestic firms, designed to a greater extent for customers and rather intense competition, must be well substantiated and realistic. All functional divisions of the company are involved in the development of the program and plans.

A marketing program is a system of interrelated activities that determine the actions of an enterprise for a given period of time for all marketing blocks. The marketing program contains the main indicators:

1) the timing of the start and completion of work on new products,

2) testing of prototypes,

3) organization of serial production,

4) determination of the volume and range of production,

5) the volume of optimal stocks of products in warehouses,

6) determination of the dynamics and volumes of sales of each group of goods in specific markets, including activities related to sales,

7) determination of the dynamics and level of prices (domestic and export),

8) calculations of financial costs for each program event,

9) determination of the main indicators of production and economic activities of the enterprise (profit, rate of return, cost, etc.).

The modern concept of marketing, as interpreted by a number of leading marketers (F. Kotler, J. Evans, and others), links "consumer sovereignty" with a "new business philosophy" product range with the structure of public demand. But in fact, the marketing philosophy of business is the search for the optimal combination of all factors of market success, or rather, conducting a comprehensive scientific research of the market aimed at increasing the competitiveness of the company in order to obtain higher profits.

The indicators of the study of the situation in the marketing system require planning and programming at the junction of production and consumption, but in practice the stochasticity of demand requires an active adequate response in the field of production in close interaction with trade. One of the principles of marketing says - "prices changing during inflationary processes require constant re-education of the firm's consumer." Therefore, we can conclude that marketing programs are a means of improving the production and marketing activities of individual firms, but they cannot actively influence the emergence and elimination of crisis phenomena in the economy. Marketing programs are formed on the basis of a comprehensive market research, identifying customer requests, marketing strategies and tactics and are the basis that ensures the interaction of commercial and sales services of the enterprise with scientific, technical, design and production departments, based on the consideration of interrelated marketing functions.

Marketing functions are an interrelated set of activities that include:

1) analysis of internal and external environment in which the company operates;

2) market analysis;

3) consumer analysis;

4) study of competitors and competition;

5) examination of the goods;

6) planning the production of goods based on marketing research;

7) planning of commodity circulation, sales and service;

8) demand generation and sales promotion;

9) formation and implementation of pricing policy;
development and implementation of marketing programs;

10) information support of marketing;

11) marketing management (planning, implementation and control of marketing activities with an assessment of risk, profits, efficiency).

The marketing strategy consists in the formation and implementation of the goals and objectives of the manufacturer and exporter for each individual (segment) market and each product for a certain period of time (long-term, average daily) for the implementation of production and commercial activities in full accordance with the market situation and the capabilities of the enterprise. The marketing strategy is developed on the basis of research and forecasting the conjuncture of the commodity market, the study of goods, buyers, competitors and other elements of the market economy. Depending on the adopted strategy, the activities of the marketing programs are formed. They can be targeted at:

Maximum effect, regardless of the degree of risk,

Minimum risk without expecting a big effect,

Various combinations of the two.
Marketing managers perceive themselves more as professional managers and only then as narrow specialists. The involvement of senior management in the development of marketing plans is constantly expanding. Planning becomes an ongoing process aimed at keeping company actions in line with rapidly changing market conditions.

The names of marketing plans usually vary: “Business plan”, “Marketing plan”, sometimes “Operational plan”. Most marketing plans are for one year (sometimes several years). Plans vary in length - they contain 10 to 50 pages. Some companies take plans very seriously, while others take them as guidelines. According to marketing managers, the most common flaws in marketing plans are unrealistic, lack of competitive analysis, and focus on short-term results. For businesses operating in the consumer market, the most important guidelines for developing marketing plans are:

The need and demand of consumers;

Positioning of food products and firms (enterprises) on the market;

Price for foodstuffs, including from competing organizations;

A set of qualitative properties of the products of the firm and other competing organizations;

Pre-sale service and during the sale.

At each level of the product (production, brand), a marketing plan must be developed. The marketing plan is one of the most essential results of the marketing process.

Marketing plans are classified according to the following criteria:

1. By duration:

Short-term (one year);

Medium-term (from two to five years);

Long-term (from five to ten or fifteen years).

Many firms rely on a combination of these plans.

Short and medium term plans are more detailed and

operative than long-term. For example, a one-year plan might set precise marketing goals and strategies for each product offered by the firm, while a fifteen-year plan might be limited to forecasting the external environment for that period and identifying the long-term needs of the organization.

2. By volume:

Separate marketing plans for each of the main products of the enterprise (used most often by manufacturers of consumer goods);

A single integrated marketing plan (most often used by firms operating in the service sector;

General business plan (usually used by manufacturers of industrial products).

3. By development methods:

Bottom Up - Marketing budgets, forecasts, timelines and strategies are set based on information from salespeople, product managers, and advertising staff. Bottom-up plans are realistic because they are based on operational information and have a good influence on the psychological climate (since the employees involved in the planning process are responsible for its implementation). However, at the same time, difficulties may arise in the coordination and consolidation of plans developed from below into a single integrated plan.
and linking different assumptions about the same problem, such as conflicting estimates of the impact of advertising on the marketing of a new product;

From top to bottom - the above difficulties do not arise in the development of this plan, when the planned activities are centrally managed and controlled. In this case, it is possible to use complex alternatives in relation to competition and provide a single direction of marketing activities. Nevertheless, the involvement of lower-level managers in the planning process decreases and the psychological climate may deteriorate. These two approaches are combined when top management sets common goals and directions, and employees involved in sales, advertising, goods, develop plans for the implementation of the tasks.

Marketing plans usually consist of several sections, which are presented in table 5.

The outline and content of the plan should include a summary of the main objectives and recommendations that will be discussed in the plan. The benchmark summary helps senior management quickly understand the main thrust of the plan. The summary should be followed by a table of contents for the plan.

Table 5.- The approximate content of the marketing plan for the main sections

The Market Situation section, like the first main section of the plan, describes the nature of the target market and the firm's position in that market. The planner describes the market in terms of size, major segments, customer needs and specific environmental factors, reviews the main food products, lists competitors and indicates the distribution channel. It is important to reflect the market position of the product, prices, gross and net margins for each major product over the past several years.

The level of competition - reflects the main competitors of the firm in the market. The section provides a characteristic of competitors' production volumes, goals, real and fundamental market segments, the quality level of market service, the marketing strategy used and other indicators necessary to understand their intentions and strategies.

Distribution of products - this section provides data and characteristics of each used distribution channel. Macroenvironment of the firm - this subsection describes the general trends of the business environment - demographic, legal, social, cultural, which in one way or another affect the prospects of production.

The Opportunity and Challenge Analysis section aims to get managers to look ahead and imagine the dangers and opportunities that might arise before the sale of goods. The purpose of all this is to get management to anticipate important events that can have a profound effect on the firm. Managers should list as many hazards and opportunities as they can imagine.

Hazard is a complication arising from an unfavorable trend or a specific event, which, in the absence of targeted marketing efforts, on which a particular firm can achieve competitive advantage... The marketer must assess the likelihood of each hazard and every opportunity and their implications for the firm. In addition, the product group manager must identify the strengths and weaknesses of their products.

For example, strengths products: the brand of the company (trade mark) is well known, it has a good reputation; intermediaries selling the company's products are highly professional. Weaknesses of the products: the quality of the firm's product is not much better than that of competing firms or lower; there is no clear positioning, unlike other firms, the advertising company does not differ in a creative approach; the products are worth more than the competition, but the higher price is not matched by a tangible difference in quality.

The section "List of tasks and problems" explains that, having studied the hazards and opportunities associated with the product, the manager is able to set tasks and outline the range of problems that arise. Objectives should be formulated in the form of goals that the firm seeks to achieve during the period of the plan. For example, the firm's marketer has set the goal of achieving 15% market share, 20% profitability on sales before tax on capital invested. But in fact, the current share of the company is only 10%. As a result of the situational analysis, the question needs to be addressed: how can you increase your market share? The alternatives are different: price, sales service, after-sales service, packaging, quality, discounts, etc. Based on an analysis of a specific market situation, the current market situation, a marketer may come to the conclusion that it is necessary to consider all the main problems associated with options for increasing real market segment.

The section "Marketing Strategy" sets out a broad approach to solving the assigned tasks. A marketing strategy is a rational, logical construction of real actions, guided by which the company expects to solve its marketing problems. It includes specific strategies for target markets, marketing mix and cost levels.

V classic version the marketing strategy is presented in the form of table 6.

The target markets are characterized by the following:

Table 6.- Marketing strategy of the firm (in relation to food and non-food products)

The marketing strategy should accurately identify the market segments on which the firm will focus its main efforts. These segments differ from each other in terms of preference, response and profitability. For each of the selected target segments you need to develop a separate marketing strategy. When introducing the marketing mix, the manager should outline specific strategies for elements of the marketing mix such as new foods, local sales, advertising, food promotion, pricing and distribution. Each strategy needs to be justified in terms of how it addresses the hazards, opportunities and key challenges outlined in the previous sections of the plan.

When determining the level of marketing costs, the manager must also accurately indicate the size of the marketing budget required to implement all the previously outlined strategies. The manager knows that a higher budget is likely to generate higher sales, but he needs to design a budget that provides the highest ROI.

The next subdivision of marketing strategy development is the action program. Marketing strategies need to be turned into concrete action programs that provide answers to questions such as:

1) what will be done;

2) when it will be done;

3) who will do it;

4) how much it will cost.

After the development of the program of action, the planned profits and losses are determined.

Developed in this sequence and according to the listed sections, the action plan allows the marketer to develop an appropriate budget for the company, which is, in fact, a profit and loss forecast.

In the column “Receipts” a forecast is given regarding the number and average price - net of commodity units that will be sold. The column "Expenses" indicates the costs of production, distribution of goods and marketing. Their difference gives the sum of the expected profit.

At the next stage, the firm's management reviews the proposed budget and decides to approve or change the budget. Once approved, the budget serves as the basis for purchasing materials, developing production schedules, planning manpower requirements, and conducting marketing activities. At the same time, the section of the plan - "Control" is approved, which sets out the procedure for monitoring the progress of the implementation of measures and identifies the persons exercising control over the implementation.

In practice, the goals of the plan and the allocated appropriations are scheduled for specific time periods (month or quarter). This allows the management of the company to evaluate the results achieved within each separate period of time, and for any nomenclature group of products to identify the structures (responsible) that have not been able to achieve the targets set before them.

The managers of these proceedings will need to provide explanations and indicate what measures they intend to take to remedy the situation.

Monitoring the implementation of annual plans consists in constantly monitoring the current marketing efforts and getting results to make sure that the planned sales and profit targets for the year are achieved. Key controls are marketing opportunities, analyzing the relationship between marketing and sales costs, and observing customer behavior.

Important in the system of strategic planning is the analysis of the positions of enterprises in the competition, the determination of the necessary to improve the position of enterprises, acting by improving the product (like taste, nutritional value, appearance), the choice of the most effective strategies.

“Greetings, website reader. Today I would like to philosophize a little and analyze such a topic as marketing budget. How much should companies spend on marketing to function well and generate profits? In fact, the question is not simple, but it may be possible to find an answer to it. I know that in many companies the phrase “marketing budget” is not just words, but a really thought out and applied practice. I will make a reservation right away that this article does not pretend to be an indisputable truth, but it is not devoid of meaning. Well, let's get started. "

First, a short definition. The marketing budget is the cost of organizing the company's trade, its information communication with the buyer, as well as a set of measures to stimulate the sale of its products.

What does the marketing budget depend on?

There are actually several ways to calculate your marketing budget. Which one to go to is a personal matter for each owner. It all depends on the scale of the company's development and on the owner's greediness. In addition to the monetary investment in marketing, there is also the investment of time, which is also not unimportant.

The marketing budget is a changeable thing, and it can change from many factors, here I will give only the main ones:

• Firstly, from the time of the company's activity;
• Secondly, on the scale of the company's activities
• Thirdly, from the types of advertising used;
• Fourth, on the desired return on investment in marketing;
• Fifthly, from the qualifications of a marketer.

Let's consider these factors in more detail.

Hours of operation of the company on the market.

The marketing budget is highly dependent on the time a company has been in the market. For example, a startup needs more money for promotion. The new company is unknown to anyone, and for such a company, the marketing budget should make up a large share of the turnover, and sometimes even without turnover.

A company that has been on the market for some time has already gained some popularity. The buyer knows her, knows what kind of product she offers, where to find this company, etc. In this case, the marketing budget can be about 20% of the company's profit, and without prejudice to its activities.

A very old company that has been on the market for several decades, spends on marketing only the amount, sufficient to maintain its image and periodically remind a loved one of itself. In this case, the marketing budget can amount to 3-5% of the company's turnover, while the company will feel quite confident and carefree.

The scope of the company.

Naturally, the company lives not only on time. And the marketing budget depends on more than that. There is also a scale. For example, a small company in a small town N providing legal services... Naturally, outside the city, she does not protrude and, accordingly, she will spend on marketing only in her region, where prices are simpler, and requests too. Or another example, some CORPORATION, such as Coca-Cola or Toyota, operate all over the world, their clients are everywhere (even in that small town N). And as a result, the money spent on marketing will be colossal, although the profit too.

You can place an advertisement on a federal channel in prime time, for example, or on a local radio station for 10 seconds of airtime. Naturally, the audience will be covered differently, but the whole point is how you are ready to swing and what effect you expect. Is it worth the candle?

Desired return.

As you know, if you believe the statistics, advertising (even if this is one, only part of all marketing, but still) works plus or minus in 1% of cases. That is, out of a hundred people that will see her, only one will come. I am not inclined not to believe the statistics, I think that it is. Based on this, we ask ourselves how many requests should be received, then elementary arithmetic and voila - how much money should we spend.

Marketer qualification.

I believe that the factor is not unimportant. There are "specialists" who will spend millions of dollars in marketing budgets, and in the end will only get a fig. At the same time, they will also make excuses that the wind is not the right one, but the sun has risen at the wrong angle. However, there are those who are able to do excellent marketing without investing a single penny, or getting along with a small fraction, while getting impressive results. Naturally, such a specialist will not ask for a small salary, but again, is it worth the sheepskin - it's up to you.

How often should you spend on marketing?

How much you need to spend on marketing seems to be clear. Now let's see how often you need to do this. There are two radically different opinions that I come across from time to time on the net.

First opinion.

Marketing budgets are one-off. That is, once spent, and that's enough, now let the marketing work for us. This decision is not correct (this is my personal opinion), marketing should be constantly fueled by additional infusions. If you cut your marketing budget after seeing a positive result, then over time you can lose everything and have to start over. And this will be completely different money. It's like eating here. Better often, but little by little, than once, but with all that is. At the very least, this method will significantly save money.

Second opinion.

Marketing can go without a budget. I won't even argue: maybe, but not for long. And then, that's all - the collapse of the company. Naturally, if the professionalism of the marketer allows it, then this is quite acceptable. But are there so many such specialists in Russia?

On this, perhaps, I will finish the story about the marketing budget and the specifics of marketing costs. I think that on the pages of this blog I will repeatedly return to the coverage of this topic. In this regard, the recommendation is to subscribe to updates. And as always, great marketing to all of us. .

This article is for anyone who is thinking about their marketing budget for the next year. Whether it's your first time doing this, or more experienced entrepreneurs are looking for advice on typical selling costs and how to determine which ones are worth keeping, increasing, or decreasing.

Here's how to create a solid marketing budget that will help you create your marketing plan and make sure all the money you invest is paying off.

• Marketing costs for new companies and retailers (if)
• General marketing expenses
  • Brand development
  • Search engine optimization
  • Marketing in social networks
  • contextual advertising
  • Content marketing
  • Email Marketing
• Freelancers and employees

Marketing costs for new companies and retailers

Marketing costs in different types of business can vary significantly. Use the following guidelines and statistics for startups and retailers, how much of actual or planned gross income worth highlighting for marketing.

• Small businesses with an annual income of less than 5 million rubles should allocate 10-15%.
• Startups in most industries typically use 15-20% for marketing.
• Retailers building their brand spend up to 20% of their sales revenue on marketing costs.

To be successful in promotion, you need to set aside a certain budget for marketing, and not use the money left over after paying other expenses. You also need to focus on creating a robust marketing strategy that includes analytics to determine which marketing strategies generate the best return on investment (ROI) so that your marketing investment is used effectively.

General marketing expenses

Now it's time to move on to a detailed analysis of the most common marketing costs that tend to be found in everyone's budget, from small businesses to large companies.

Brand development

For startups and new businesses, the first selling expenses will be associated with establishing their business brand.

• Domain. The cost of your own address on the network (vashadres.ru) will usually start from 500 rubles per year, depending on the chosen extension. Affordable.ru will cost $ 14 per year, while specialized extensions (vashadres.camera, vashadres.glass, vashadres.kitchen, vashadres.shoes, etc.) will cost up to 3000 per year. It is worth noting that if the desired domain is not available, it can be redeemed for hundreds or even thousands of dollars.
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• Site - Those who choose can expect costs in the range of 300-3000 per month depending on the features present on the site.
• Logo Design - The first thing most startups need is a logo, as it will be included in almost all offline and online marketing assets. Fortunately, developing it can be quite affordable.

Search engine optimization

Search Engine Optimization (SEO) is an ongoing process vital for any business looking to reach customers in organic (unpaid) searches from Yandex, Google and other search engines. Search engine optimization can be boiled down to three main tactics: internal optimization, external optimization, and monitoring.

Social media marketing

One of the best things about social media marketing is that they are free to use, as long as you don't run ads. The time taken will be the biggest investment you can make. Marketing activities include creating social profiles, posting new content, building an audience and interacting with it regularly.

With this in mind, the investment of time can be substantial, as most companies maintain an active presence on major social media platforms. Needless to say, your social media marketing strategy will be continuous too. Luckily, dedicated apps can be used to make it easier to manage and update your social media accounts.

One of the costs commonly associated with social media marketing is a management tool that helps you post and track activity on each social network in one place. To automate these processes, you can use a tool like Buffer. For newbies, they have a free plan that allows you to publish up to 10 posts at a time.

Social media analytics tools are also popular with top marketers. The best choice for small businesses with limited marketing budgets would be built-in analytics for business profiles and pages on each of the major social media platforms. To get the best results, you need to invest more time creating quality content and engaging your audience.

contextual advertising

Both search engines and social media offer PPC (pay-per-click) advertising options. PPC allows you to reach new customers by paying for space on search engine results pages, social media news feeds, and sites and applications that are part of their advertising system. PPC is well suited for companies looking to find new customers while they are building their organic search rankings through optimization and organically reaching audiences on social media.

PPC costs will depend on the number of new users you need to reach, how you need to reach them, and how well your ad campaigns are optimized for conversions. For example, if a business isn't interested in search engine ads but wants to reach audiences on social media, they can pay for ads on Facebook (which also includes Instagram) and Pinterest. All of these networks have ad options that will allow you to reach new customers directly through their news feed.

To get the most out of your PPC budget on any network, you need to do the following.

• Define your target audience() as accurate as possible.
• Use a specific landing page for the target audience and product for which the ad is being created.
• Create text, images and video (if possible) for your ad that focuses on getting a specific target audience to click on a landing page for a specific product or service. You also need to make sure that the text, images, and video blend harmoniously with the landing page.
• Measure the results of each PPC campaign, compare with other PPC campaigns and find which ones bring in the best results (more sales), then focus your budget on winning campaigns and networks.

Content marketing

Content marketing is an ongoing strategy that is about creating new content to attract new customers. Most companies start with text blog posts, but you can also create ebooks, infographics, presentations, podcasts, and videos as part of their content marketing activities.

The main ways a company reaches new customers through content are organic search, social media sharing, and retargeting blog traffic with PPC ads. Ideally, each piece of content should be optimized for the keywords that ideal customers are looking for in order to get more search visibility. You can also attract new customers by sharing your content on social media.

Depending on the type of content you create, marketing costs may vary. Some companies create content themselves, while others hire freelancers and agencies to create and promote new content.

You can spend more on PPC if you decide to promote your content to new customers through search engine and social media ads. You can monetize your blog content with retargeting ads for users who have visited your blog. After visiting the blog, customers will see a product ad on Facebook or Google, depending on which ad platform they choose. If your content and products are in a specific niche, you can generate sales from qualified traffic.

Email Marketing

Email marketing is a surefire way to reach current and potential clients who shared their email address when purchasing or subscribing to site updates. This allows new customers to be reminded of their product choices and repeat customers to come back and have a look at the updated inventory.

One of the main costs of maintaining an email marketing campaign is the service that maintains a mailing list and helps you send regular emails to people on that list.

Some of the most reliable, affordable, and flexible email marketing services include the following.

• Mailchimp - Free to use for up to 2,000 subscribers and 12,000 emails per month. For more subscribers, emails, and features, plans start at $ 10 per month.
• Aweber - Plans start at $ 19 per month for a maximum of 500 subscribers with unlimited emails.
• Constant Contact - From $ 20 per month for a maximum of 500 subscribers.

Since most email marketing services offer a free demo, you can try them all and pick the one you like the most. In particular, you need to look at whether it is easy to create letters there for your subscribers.

Freelancers and employees

There are two ways to find experts to help you with your marketing. You can hire freelancers for temporary work or as needed, or you can hire staff for permanent work. For novice businessmen, the best option would be the services of freelancers.

If the company decides to hire an employee for a permanent job, he will need to pay a salary based on education, specialization and experience. Here are a few marketing positions, job descriptions, and salaries that might suit a company's internal marketing needs.

• Marketing coordinator- the average salary is 150,000 per month. They are responsible for the design and implementation of marketing and advertising campaigns for products and services, tracking sales, creating promotional materials, planning events, maintaining a database of existing and potential customers, and creating reports.
• Digital Marketing Specialist- the average salary is 30-100,000 per month. They are responsible for one or more marketing strategies including search engine optimization, social media marketing, PPC advertising, display advertising, and other digital marketing tasks.
• Marketing Manager- The average salary is 20-50,000 per month. They are responsible for developing and executing marketing strategies for the business.

How to create a marketing budget

Now that you have an idea of ​​the types of costs that need to be included in your marketing budget, you can start creating it directly. The easiest way for small businesses is to use a Google Sheets or Microsoft Excel spreadsheet.

Budgets differ for different brands and niches. One entrepreneur can add free Digistra apps, while another store will invest in paid apps. Investing money in a second business will usually result in a different budget than the first store.

It may be that after including all the required marketing costs, additional costs can be added. By experimenting with the costs associated with a potential new employee or freelancer, social media tool, email marketing service, you can get an idea of ​​what the overall marketing budget will be, monthly and yearly.

The marketing budget is a marketing plan expressed in natural and monetary units.... The budget reflects the projected values ​​of revenues, costs and profits. The essence of budgeting consists in transforming all marketing programs, activities that are included in the marketing plan, into costs with their subsequent compensation from the proceeds, income from the sale of the mass of commodities. The salient features of a marketing budget are shown in table 11.5.

Marketing budgeting helps to correctly prioritize the goals and strategies of marketing activities, make decisions in the field of resource allocation, and maintain effective control. The main purpose of budgeting can be called - the allocation of resources in which the contribution to the achievement of financial and marketing goals will be maximum.

Table 11.5.

Salient Features of Marketing Budget

The following budgeting techniques are applied:

1) "bottom-up", when the budget is developed by an ordinary manager, and then submitted for approval to higher-level managers;

2) bottom-up / top-down, where the initial budgeting recommendations for line managers are carefully reviewed and revised by senior managers before they are approved;

3) "top-down / bottom-up", when budget constraints are made by senior managers, and then line-item budgets, taking into account these constraints, are again transferred to ordinary managers.

The size of marketing costs depends on the size of the enterprise, as well as on its role and claims in the market. “Following the Leader” usually takes advantage of the leader's market penetration efforts while minimizing their own marketing costs. Self-development of new markets and renewal of products cause a sharp increase in marketing costs. The type and novelty of the product, the degree of market development, the nature of the firm's strategy, its concern for its prestige - these are the main factors that determine the size of the marketing budget of any firm. With a high level of firm claims and strong competition in the market, the firm will likely have to significantly increase its marketing costs.

The following are the most common methods for determining your marketing budget.

1. Funding "from opportunities". Many firms set their budget based on the amounts that the company can afford. This method is used by production-oriented firms rather than consumer-oriented firms. This is essentially a leftover funding method. The only advantage of the method is the absence of serious conflicts on financing issues with production units due to their unconditional priority. The main disadvantage of the method is the subjectivity of the allocation of specific amounts, their unpredictability from year to year.

2. Price list method... With this method, the marketing budget is planned based on data on the estimated sales volumes, total costs and the assigned value (rate) of the target profit. Marketing budget is the difference between gross profit (sales minus variable and fixed costs) and the amount of target profit. Essentially, the residual funding method is applied here. It should be said that within the framework of the method under consideration, marketing costs are related to the distribution of profits, although at least some of them are included in the cost of production.

3. Method of "fixed interest". The method is based on deducting a certain percentage of last year's or expected sales volume. This method is quite simple and is often used in practice. In this method, the cause (marketing) is made dependent on the effect (sales). The method is subjective, since market trends are not taken into account, and the amount of interest is usually set by a volitional decision.

4. Competitor match method... In this case, the level of marketing costs is set at the level of costs of a competitor close in resources and market niche. This method is often used because it is believed to be based on the "collective wisdom of the industry." The considered method has significant disadvantages. First, it is difficult to determine the size of a competitor's marketing budget, since its size is a trade secret. Secondly, there is no guarantee that the competitor chosen by the firm to emulate optimally forms its budget and proceeds from the target settings that we have assigned to it.

5. Method of maximum costs argues that as much money as possible should be spent on marketing. The disadvantage of this method is the neglect of ways to optimize activities. Given the significant time lag between spending and delivering results, this method can quickly lead a firm to financial hardship that is difficult to overcome.

6. Method "goal - task"- based on the calculation of costs that take place when conducting marketing activities in the company to achieve the set goals. The method assumes that any marketing effort must strictly correspond to the specific goals of the work, while the costs of each marketing action are correlated with the expected benefits in moving towards the intended goal. In this case, there is a danger of turning the budget and the marketing activity itself into a mosaic of inconsistent fragments, since marketing goals are often isolated from each other, split into time intervals, market segments and steps of attainability. A holistic marketing strategy is difficult to trace with this method.

7. Method of "margin income"- based on a retrospective analysis of the firm's performance. Based on the results of the analysis, the actual relationships between changes in sales and marketing costs are determined. These dependencies are used to determine the marketing costs that correspond to the expected sales volumes. The “profit margin” method involves significant research and expert work. The limitation of the method is manifested in the fact that with a significant change in the conditions of the firm's functioning, the results of retrospective analysis lose their significance.

8. Method of accounting for the marketing program- combines the two previous methods: "goal - task" and "marginal income". It is close to functional-cost analysis and involves a thorough analysis of the costs of achieving specific goals, but not by themselves, but in comparison with the costs for other possible combinations of marketing means, i.e. when implementing other "chains", alternatives to the marketing strategy.

The choice of a specific method of forming a marketing budget is largely determined by the degree of seriousness of the firm's approach to assessing the effectiveness of marketing. How, and to what extent, marketing efforts can be funded is one of the most difficult. If marketing is funded by the “opportunity” method, then finance is lacking for non-traditional areas of activity. If funding is made as a percentage of profit (fixed percentage method), then marketing can only develop in prosperous firms. Using the competitive parity method does not guarantee success. The reputations, resources, capabilities and goals of different companies are so different that the budget for promoting one company can hardly be a guide for another. The most productive can be recognized as the "goal - task" method and the method of accounting for marketing programs.

It should be said that an increase in marketing costs in an unstable market is associated with great risk, but attempts to save on marketing can lead to bankruptcy. The financing of marketing activities is the payment for the future market health of the firm.

Marketing budget depends on how much big company, what is her specialization, what niche she occupies and what strategy she has chosen. Learn how to properly plan your marketing budget and if you can skip it altogether.

Issues covered in the article:

• What is marketing budget.
• What factors influence the marketing budget.
• What items are usually included in the marketing budget.
• What methods are used to compile the company's marketing budget.
• What are the methods for determining the marketing budget.
• Is marketing possible without a budget.

What is a marketing budget

Marketing budget is understood as a marketing plan presented in kind and in cash. The marketing budget gives you an idea of ​​the amount of income, expenses and profits. The process of budgeting is the transformation of the projects included in the marketing plan into expenses with their subsequent reimbursement from the proceeds from the sale of products.

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The marketing budget allows you to highlight the main and secondary tasks and strategies in the field of marketing, use resources wisely and effectively carry out administrative functions. As the main goal of forming a marketing budget, you can determine the allocation of resources in such a way that all opportunities are used to achieve financial goals.

There are several specific features of the marketing budget:

• can be formed both for a time interval and for a specific event (a separate procedure, research, action);
• expenses of the company are taken as expenses for carrying out various marketing companies;
• operations of a qualitative and quantitative nature that determine the effectiveness of marketing activities are considered as income.

The formation of the marketing budget is influenced by:

• economic development of the state (distribution economy is minimal, market economy - up to 30% of sales volume);
• belonging to one or another industry (the size of the marketing budget in the production of cosmetic and perfumery products in some cases amounts to 70% of the sales volume, while in industries with a low level of competition (in particular, raw materials), the amount of marketing costs is much lower);
• the size of the company and its position and claims in the market (if you do not strive to get close to the leader, then you can take advantage of his achievements in covering the market without significant costs);
• type of products and their novelty;
• how much the company has mastered the market;
• the specifics of the enterprise development strategy and how much she cares about her own authority;
• the level of competition in the market.
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What are the features of marketing budget planning?

Drawing up a marketing budget plan is a rather complex process that lies in the area of ​​responsibility of the company's management. The marketing budget includes costs in such areas of the organization as:

1. study and assessment of the state of certain market departments, which can be market, mid-term or long-term;
2. guaranteed preservation of the high competitiveness of goods;
3. ensuring effective promotion of products;
4. implementation of information communication between the company and its customers, for which advertising is used, various ways of effectively stimulating the sale of products, participation in a variety of marketing activities;
5. creation of a safe network for the sale of goods.

Marketing budget planning ensures the successful development of a company with an intensive market development. With the help of the marketing budget, you can sell a large number of goods and recover all costs related primarily to the production and analytical areas, while making a large profit.

Expert opinion

Determining your marketing budget isn't always easy

Roman Tkachev,

project manager for the promotion of the MDV trademark, "AYAK" group of companies

Quite often, entrepreneurs are not serious about spending on marketing events as a newfangled trend, not seeing them as tools that can help expand and retain their customer base. Marketing spending is not always perceived as an investment in customer acquisition or retention. This is because marketers cannot present a cohesive, high-quality development project to management.

One of the most important tasks in developing a policy for the further development of a company is to determine the size of the marketing budget. This means that the budget includes not only advertising costs, but also the costs associated with the study of the situation on the market, the design of brand symbols, customer management and other promotions.

It should be borne in mind that the preparation of a marketing budget serves to clarify the position of the company at the moment, determine the course of its development and ways to achieve its goals. A marketing budget plan is key in terms of organizing the company's work to generate income. Thus, the marketing budget determines all other activities of the enterprise.

What Factors Affect Your Marketing Budget

1. Time of the organization's activity.

A start-up business needs much more funds for development than one that is already confidently on its feet. That is why young firms need to invest the lion's share of working capital in the marketing budget, often absorbing the entire turnover.

Firms with some experience of work, and their products are already, as a rule, familiar to customers. This allows you to form a marketing budget in the amount of 20% of the entire profit of the organization, without harming its work.

An enterprise that has been on the market for more than a decade needs to allocate funds only to maintain its own authority and promotions that remind customers of the brand. In this situation, the size of the marketing budget will fluctuate within 3-5% of the working capital, which will allow the company to feel quite comfortable.

2. The scale of the organization.

An example of the formation of a marketing budget can be a situation when a small company that produces building materials operates in a small town. She works only in her region, where prices are lower and consumer demands are not so high. The marketing costs of such an organization will be significantly less than that of world famous brands such as Danone or Ford, which operate on all continents. The resulting profit in the first and second cases will also differ dramatically.

Advertising can also be approached in different ways, for example, take the best time on the air of a state channel on television, or place a small ad on the pages of a local print publication. The results from these approaches will differ in exactly the same way as the audience. When choosing the types of advertising, it is important to understand exactly who you want to contact and what result you intend to achieve.

4. Desired effect of marketing investments.

According to statistics, promotional activities bring results in only about 1% of cases. Having made the simplest calculations, one can understand that out of a hundred who received information, only one person will contact the company. Understanding this will make it easy to calculate the amount of funds that need to be invested in a promotion.

5. The level of training of marketing specialists.

When choosing a marketer, you should understand that there are such "pros" who will show off their grandiose projects, spend impressive sums, while not achieving any result and blaming everyone and everything for failures. However, there are also more expensive, but at the same time much more competent specialists who can achieve high results at minimal cost. Which of these specialists to hire is up to the manager to decide.

Practitioner tells

How to set requirements for your marketing budget

Boris Karabanov,

Methodology Director, Intalev Group of Companies, Moscow

Marketing budget requirements:

1. A clear framework.

So, you can determine the size of marketing costs from sales of 5%. This will allow you to keep your marketing spend at a constant level, as well as your ROI.

2. Fixed size of the cost of circulation.

This approach will allow you to determine whether the income received from clients justifies the costs incurred in connection with their attraction. An example is shown in the table below. Thus, the company employs 5 marketers in three positions. The marketing department is faced with a plan for holding promotions that will be able to provide a certain number of hits that correspond to the normative indicators for the position. The sales budget is limited to 36 million rubles, and the marketing budget is 2.5% of the sales volume and equals 900 thousand rubles. Based on these data, the cost of calls for each position is then calculated.

Activities aimed at attracting customers are not directly recorded in the table. Only the cost of the calls themselves is indicated, including the average cost for the organization per month. If this cost is exceeded, then there is a violation of the plan associated with budget overruns. The dynamics of the violation can move in two directions: the amount of funds spent on activities can increase, or there can be an insufficient number of appeals themselves. Thus, the main goal of marketing in this area can be defined as the need to increase the number of hits per 1 ruble of costs (increase the number of sales per call, increase the number of repeat sales to one client).

What items are usually included in the marketing budget

1. The article "Direct advertising", which includes the costs associated with paying for advertising placed on television, radio, print media and on external resources.
2. The article "Creation", which includes production costs, as well as the costs associated with the creation of marketing materials (commercials, posters, payment for services invited to participate in advertising, stars, etc.). The following rule is accepted: expenses for this article should not exceed 10% of the total marketing budget.
3. A "Supporting Materials" item, which includes the cost of ancillary materials for promotions (flyers, brochures, catalogs and guides for customers and employees, stationery with a brand logo, etc.).
4. The article "Web", which became independent due to the active development of computer technologies and their importance for advertising. This includes the costs associated with the creation and popularization of sites, their content, promotion in social networks, payment for their maintenance, etc.
5. The article "Trade Marketing", which fixes the costs of conducting promotions addressed to direct consumers of goods or resellers, as well as the creation of trade equipment, etc.

What methods are used to compile the company's marketing budget

When calculating the marketing budget, the following methods are used:

• “Bottom-up”: the budget is developed by the rank-and-file manager, and then sent to higher-level managers for approval;
• Bottom-up / top-down: proposals from rank-and-file managers are reviewed and revised by senior managers prior to approval;
• Top-down / bottom-up: regulatory budget constraints are imposed by senior management, after which line item budgets are passed on to administrators.

Marketing budgeting methods

1. Funding "from opportunities".

This method was encountered by those who worked, guided by a clear order "from above". At this stage, this approach is used by companies that focus on manufacturing rather than sales and marketing. In this regard, the marketing budget is quite small - it includes what is left after meeting production needs (the so-called residual method). The advantage of the method is that there are no contradictions in the company with the distribution of funds for marketing and production requests, due to the priority of the latter by default. The disadvantages include the chaotic allocation of different amounts to the marketing sphere, which does not allow planning for long periods of time. Often, in this case, there is no money left to analyze the effectiveness of the marketing activities carried out.

2. Price list method.

The pricelist method involves the development of a marketing budget plan based on information about expected sales volumes, summed up costs and target profit margins. F. Kotler called this method "planning based on target profit indicators", but in fact, the residual principle of financing also operates here. The marketing budget looks like the difference between the gross profit and the amount of the target profit. Certain doubts about the application of this method in practice are also caused by the fact that in this case marketing costs are attributed to the distribution of profits, while at least some of them is the cost of production.

3. Method of "fixed interest".

This method is based on the deduction of some part of last year's (at best, expected) sales volume. The method is quite simple to use, which is why it is often adopted by companies with a large number of branches to calculate the budget of each of their departments. However, experts call this method illogical, since it establishes the dependence of marketing (cause) on sales (effect). Positive dynamics when using this method is possible only if the marketing development at the previous stages was successful. Otherwise, the size of the marketing budget will be reduced, and the company will go to a standstill.

Usually, this method is used as an auxiliary one, when it is necessary to distribute marketing sums in specific areas of activity (for example, for advertising, sales promotion, efficiency analysis, etc.). Among the disadvantages of the method, it can be noted that it does not allow making fundamental changes in the work of the company and is rather subjective, since the percentage is determined by the decision of the management without proper argumentation.

4. Method of matching to a competitor.

The application of this method is possible only if a number of specific conditions are met:

• you need a competing organization similar to yours in terms of resources involved, area of ​​interest and market position;
• it is required to at least roughly calculate the size of its marketing budget, taking into account the breakdown into separate items of expenditure, which is problematic. So, in order to obtain objective data on the expenses of a competitor in a particular area, it is necessary to have your own economic intelligence.

It is worth remembering that the relationship between costs and results is not linear, and a competitor may have more experience in the market and have already achieved our goals. Also, one cannot be completely sure that a competing company has chosen an optimal development strategy and is working to achieve the goals that we have attributed to it.

The main disadvantage of the method should be called the onset of the moment when imitation will become impossible, and in some cases even unprofitable for one's own development.

5. Method of maximum expenses.

According to this method, the maximum amount of funds must be spent on marketing. However, with obvious advantages, this method excludes ways to optimize the company's work. There are also known cases when, due to the time lag between spending funds and achieving goals, the company had serious financial problems, as a result of which it lost its marketing positions.

6. Method "goal - task".

The application of this method requires that each marketing activity is aimed at solving specific business goals and in accordance with the planned bonuses on the way to the tasks set. To ensure that the use of the method does not cause problems, the goals of the company are clearly delineated, divided by time intervals and levels of attainability, which include the branching of the market. Also, when implementing the method, the entire set of marketing tools is used. The goal-assignment method is best suited for short-term planning. If used for planning at long-term intervals, then it easily turns into a method of financing "from opportunities".

7. Method of "margin income".

This method involves referring to previous experience. However, it operates with more specific values ​​than sales volume - for example, a non-linear actual proportion between changes and marketing costs. Combining different options helps you find the ideal score. Investments with this method are aimed at the most profitable areas and activities. Also, when using the "margin approach" method, serious research and expert work is being carried out. This method can be applied simultaneously with the goal-to-task method. And it also leads to the balance of the highest cost method.

8. Method of accounting for the marketing program.

This method is based on two already known - "goal - task" and the method of "marginal income". We can say that the method of accounting for a marketing program is akin to a functional-cost study, aimed at the implementation of certain goals and objectives in comparison with costs in the context of the existence of other options for combining marketing tools (other types of marketing policies).

How to choose a method for determining a marketing budget

Determining the method of forming a marketing budget depends on how responsibly the company approaches the analysis of the effectiveness of this type of activity. At the heart of everything is the concept of "sales reaction function", which means the forecast of the possible volume of sales of goods at various indicators of costs for marketing activities. In this case, a rather controversial question has to be resolved about how and to what extent it is possible to invest in marketing activities. When the “from opportunities” method is used, funds are often not enough for non-standard activities. With the method of percent of profit. Either it is about development in successful companies, while others are not destined to overcome decline. By applying the method of matching to a competitor, it becomes impossible to take a leading position in comparison with a competitor. Thus, the most effective methods are "goal-assignment" and the accounting of marketing projects.

At the same time, we can talk about a pattern that affects the construction of a graph, which reflects the sales volume curve in terms of marketing costs. If the level of expenses is low, then sales are practically unchanged, because the work of the company is not visible on the market, since the “threshold of market sensitivity” has not yet been crossed. If the costs are high, then the goals will also not be achieved, since any demand has its own ceiling, which is rather difficult to approach, and also because the increase in turnover will stimulate competitors to such behavior, to which the market will stop responding.

It becomes obvious that an increase in marketing costs in an unstable market situation is much more dangerous than in a situation where the market position is stabilized. However, saving on marketing tools amid the general crisis will lead the company to a dead end. In other words, cash injections into marketing activities create the basis for the company's financial well-being for the future.

Expert opinion

What are the possible mistakes when forming a marketing budget?

Victor Kopchenkov,

Marketing Communications Expert, "Coffee"

The creation of a marketing budget is often accompanied by the fact that the person responsible for this does not take into account the relationship between the size of the budget and its effectiveness. When formulating a marketing budget, the basic premise is usually that the compiler can predict the relationship between the size of the budget and its effectiveness. Consider, for example, a situation where a business produces a product that is sold in a few weeks. This allows us to conclude that we are talking about consumer goods. Knowing this, you can calculate the number of hits and the percentage of successful transactions when advertising a specific number of organizations.

However, such hypotheses will not be confirmed in all cases. This is influenced by the presence of a specialist's experience in some specific conditions, as well as the presence of an information and analytical department that processes data on the effectiveness of certain marketing campaigns. A similar function must be performed by marketers to optimize the further work of the company.

Very often, managers believe that in order to improve work efficiency, it is enough to hire a specialist, while forgetting about the specifics of their organization and the state of affairs before such an employee appears. This affects the fact that even a professional is not always able to quickly establish business processes in a specific industry in a specifically delineated area.

Analysis of the role of marketing tools, identifying their significance for the work of the company and the creation of specific budget items in aggregate serve to determine the effectiveness of activities, which assumes the verification of actions and the possibility of using the accumulated experience in the future.

Tip 1. Reduce marketing budgets.

As a rule, a decrease in marketing funds is regarded as the onset of a crisis, since it is generally accepted that during a downturn, marketing expenses are reduced in the first place. However, it is possible to reduce inefficient spending items.

Sometimes, when you have several marketing directions, you may notice that some of them do not bring results. In this case, these measures should be promptly abandoned so that they do not slow down the activities of the entire organization as a whole.

Often, an organization resorts to all known methods of advertising its products, for example, on the Internet. However, a quick and good result is obtained from only one or several methods. Other types of advertising require, for example, a longer period to achieve the desired effect. In this case, you need to correctly prioritize, answer the question of which tasks are paramount - short-term or long-term. Focusing on short-term goals will allow you to achieve high and operational results precisely from marketing activities. Having prioritized, you will be able to correctly distribute the budget and understand where you need to increase the amount of injections, and where costs can be reduced.

Tip 2. Setting the correct performance indicators, taking into account many factors.

Measuring performance indicators must be competently, taking into account all existing factors. So, it should be understood that the role of sellers and buyers is played by people who depend on weather conditions, holidays, etc., while the Internet is just a tool for their interaction. To get an objective picture of the main indicators of productivity, you first need to highlight all the factors that affect your business and promotions.

Tip 3. Not only marketing products.

Traditionally, firms are interested in increasing sales and making quick profits, which entails focusing on the marketing promotion of goods. However, consumers pay attention not only to products, but also to the level and quality of service, the relationship between personnel, the promotions you conduct, the work of the call center, interviews, etc. whole, and not just goods, that is, to be both direct and indirect.

Tip 4. Unrelenting analytics.

The study and evaluation of the means of increasing the volume of sales is at the heart of the planning of each firm. Based on the indicators obtained, it will be possible to regulate the use of these funds in practice. Through the analysis, data can be obtained on the effectiveness of each of the tools you use. There is simply no other way to get such information.

For such purposes, quite a few services have been developed, for example, Yandex.Metrica or Google Analytics, which carry out statistical accounting of data obtained from the results of a comprehensive analysis.

The mechanism of work is as follows: each marketing campaign has its own task, after the setting of which, the indicators of this event begin to be monitored using the means already mentioned.

What happens to the business if you give up marketing? Will it lead to decline? Will it be possible to maintain a customer base in such conditions? There are a lot of questions. Answering them, you can draw a conclusion about the importance of your marketing activities for the development of the company.

It is possible that after giving up marketing, there will be no major changes. This will indicate that your work in this area was lined up incorrectly. If the marketing department worked with full dedication, then the result of the rejection of its services will be noticeable very quickly. Analyzing the relevance of marketing to your firm will allow you to adjust the budget allocation in the right way.

Tip 6. New products in your market and your prospects.

Have you ever wondered how things will be in your company in a decade? The fact is that marketing involves not only operational results, but also ensuring stability in the long term. If you do not have a vision of the company's development in the future, then your marketing is not working at full capacity, since it also implies a predictive function.

If you do not care about the prospects for your development, then you can come to a dead end, which many entrepreneurs face, who, without thinking about the future, strive only to achieve their real goals. This approach suggests that the firm has no strategy.

In this situation, the mechanical work of the personnel is carried out, however, there is no talk of professional growth, as well as of the development of the marketing sphere. The consumer sees what is happening with such a company, and, most likely, at some point will go to more successful competitors.

Marketing of any company is based on the availability of a unique selling proposition. Without this basis and plans for the future, the company becomes depersonalized and ceases to be interesting to customers. In a rapidly evolving reality, risks increase significantly.

Tip 7. Your site is the sales leader for your business.

Based on the above, we can draw another recommendation regarding the fact that if your Internet resource does not yet occupy a leading position in the sales area, then you need to make adjustments to your strategy. This pattern works for all areas except B2B, where personal contacts are of primary importance.

For successful work, it is important that the site really works and contributes to an increase in sales. The advantages of this marketing tool quite a bit of. So, it is less expensive than opening a real retail outlet, it becomes possible to carry out its activities around the clock, you can use all possible creative approaches, there is no dependence on the seller.

The existing site should work with constant improvement of its quality and functionality. In addition, it is required to constantly monitor the results of its activities. The availability of up-to-date data on the site's operation will allow you to competently and efficiently form a marketing budget.

Is marketing possible without a budget

Is it possible to form marketing without a budget and how to do it? This question most often arises among novice businessmen either in the field of microbusiness, where the budget is quite small or there is none at all.

It is worth understanding here that marketing without a budget is a temporary and forced measure due to the lack of necessary funds in the vast majority of cases. It is possible to start developing a business without a marketing budget if you use unconventional methods and cutting edge tools. However, in the long term, it is simply necessary to form a marketing budget.

When is marketing without a budget used?

1. When starting a new business when funds are insufficient.
2. When a new, unparalleled type of product is introduced to the market.
3. If you occupy a very narrow niche in the market, where there is little competition.

When is a marketing budget required?

1. When the competition in your area is very high.
2. When firms operating in your market specialize in the sale of goods and / or services that are similar in their properties and qualities.
3. When you operate in an environment of dominant price competition.

What tools are right for marketing without a budget (or with a very tight budget)?

1. Creation of selling pages using free programs. It is optimal to apply for this purpose to high-quality designers, where a wide range of tools and functions is selected, and there are also opportunities for further search engine promotion of the resource.
2. Self-service search engine improvement of the site. This requires preliminary preparation, however, it allows you to save money by improving the site on your own. In conditions of low competition, such actions can lead to high results.
3. Email Marketing. The only cost involved in this matter is to create a customer database that will subscribe to your mailing list. To this end, you can use tools such as lead magnets, providing useful information, exchange for a subscription.
4. Content marketing will be the best solution for aspiring entrepreneurs and those on a budget. The creation and distribution of useful and interesting content will quickly win the sympathy of consumers.
5. Social media promotion work. It is not difficult to master the methods of promotion, and if you carry out this work yourself, you can limit yourself to very small expenses.
6. Marketing in places of Internet communication - on forums, portals, chats. This way of working is time-consuming and creative, but not costly and can help you achieve great results.
7. Another cost-effective promotion tool is viral marketing. However, it requires creativity and increased relevance.
8. Cross-marketing involves finding partners from areas close to you, with whom you can conduct marketing activities, as well as advertise each other's products. This tool has existed and has been working for a long time, and its highest performance has been proven by the time and experience of many companies.
9. Word of mouth marketing, when grateful customers are engaged in your promotion. To get results from this tool, you need to constantly improve the quality of your products and / or services, customer service, apply a creative approach, which will ensure a vigilant interest in your company.

Information about experts

Roman Tkachev, project manager for the promotion of the MDV trademark, "AYAK" group of companies. Graduated from Altai State University(specialist in international relations, orientalist) and Yanshan University (PRC) (Chinese, international marketing). He was engaged in the development and implementation of a supply planning system and a system for accounting and analysis of commercial proposals for the MDV brand. AYAK group of companies was founded in 1996. Distributor of world famous manufacturers of air conditioning equipment. It has about 50 regional offices, more than 2,000 dealer companies in the Russian Federation and the CIS countries. Official site - www.jac.ru

Boris Karabanov, Director for Methodology, Intalev Group of Companies, Moscow. Intalev Group of Companies. Field of activity: development and implementation of enterprise management information systems. Territory: the company's offices are located in Russia (Moscow, Novosibirsk), Ukraine (Kiev), Kazakhstan (Alma-Ata). Number of personnel: over 100. Awards: laureate of the "Time for Innovation 2015" award in the category "Best innovative solution for managing efficiency." Official site - www.intalev.ru

Victor Kopchenkov, Marketing Communications Expert, Coffee. Since 1993 he has been engaged in market research, strategy development and marketing consulting... Founder of the Marketing in Russia community, its moderator and editor. Founder of the Kofe communication agency. Kofe is an agency specializing in building communications aimed at building and managing a client portfolio. Works mainly in the b2b sector.