How do I develop a marketing budget?Posted on: December 21, 2004
I wrote an article for Professional Marketing magazine on this topic in May 2004 – please email me and I’ll send you a copy or visit the article bank at www.pmint.co.uk. However, depending on the nature of your firm (size, structure, markets served etc) it may be necessary to produce marketing budgets at a number of different levels as the diagram below shows.
Marketing Plans and Budgets
A critical issue often missed in professional services firms is that whilst cash investment (anything from 2-5% of gross fee income) might be invested in what we typically consider to be marketing activities, the biggest investment is in terms of opportunity cost of all the fee-earners involved in day-to-day and key marketing, selling and client development activities.
Some of the other critical issues raised in the article are:
- Using the ‘objective and task’ method to set budgets
- Firms involved in consumer markets (e.g. personal injury, family law) will have higher cash budgets than those in business-to-business markets (e.g. corporate finance, employment/human resources etc) where the fee-earner time costs are higher
- Separating ongoing committed spend from capital expenditure items
- Planning expenditure on the basis of campaigns and for specific markets and services rather than at a central level
- Balancing in-house marketing staff costs vs outsourced marketing specialist costs
- Managing the time of those fee-earners involved in marketing, selling and client development activities
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As always, if there are particular topics you would like me to address in the future, please let me know. You will also find a source of more and up to date information on a broad range of management and marketing issues in the professions by checking out the blog where I also post regular reviews of books that might be helpful.