Planning your Marketing Budget

market 1

market 1 (Photo credit: tim caynes)

Today’s guest blog is written by Mindy Jeffries of Stealth Marketing. She will be writing a series of blogs that will appear here occasionally for a while. If you want to contact Mindy you can call her at 314 880-5570. Tell her you saw her here!

It was much easier in the past to plan the marketing budget. But today there are many more choices of how and where to spend your budget.

From a bird’s eye view, let me show you how we do it at Stealth.

First we ask, what is the plan for next 12 months?  We chart or ‘brown paper’ the desired customer gain and then define the tactics needed to achieve that goal.

There are many levers to pull in order to achieve the desired customer acquisition goals. The first one is usually marketing spend.  As you spend more money, more people will hear your story and more will sign up (assuming the story is a good one).

But we marketers are always trying to be efficient.  So our next set of questions look something like:

  • “What kind of offer can I afford?”
  • “What is the best offer available to me?”
  • “How can I package that offer to look better than the competition and to get noticed?”
  • “Where can the offer be seen?”

This is a process that we go through freshly each year.

Next we build tracking methodologies behind each and every tactic.

Planning for Direct Mail

Many marketing tactics are extremely quantifiable, for example – direct mail is extremely easy to track.

While industry standards tell us to expect only a .5% to 1% response from direct mailings– we think an achievable goal is 2%.  This is achievable today, but takes focus, control groups and testing.  We call this, “Deploy, Measure, Adjust, Redeploy.”  It is a constant cycle that works hard to achieve success over time. If you pay attention to what works and doesn’t work your direct mail gradually elevates to good levels of pull.

Planning for Digital

Digital marketing is a great tactic to use in selling telecom products. It’s very targeted. You can deploy different messages to different customers and it’s cost-effective. And just like direct mail it gets more cost effective over time as you “Deploy, Measure, Adjust and Redeploy.”  Fortuitously, you can decide how much you want to spend and then you adjust the plan to fit.  As your efforts prove successful, you can add more money to a campaign. The challenge of digital marketing is finding a trusted advisor who really understands a complicated space that is changing daily.

Also, think of planning and executing tactics within social media. This still takes planning and dollars, but can change your marketing and even your customer service. Customers and potential customers can learn about you before they jump on board with your company.

Planning for Media

Media buying in telecom is another good tactic when and where it is available. But done poorly it can be a waste of budget. I once worked in Salt Lake City and there was a smaller operator in the suburbs. They couldn’t justify the media spend to buy the Salt Lake market, but our two firms together had a substantial piece of the market. They ended joining us as a partner to be able to afford the media buy. Ask yourself if there is a creative solution that makes sense in the media world.

At Stealth, we have algorithms to determine efficiency in the television medium. Don’t overlook your own channels for cross promotion.  How efficient can you tell your story with cross-channel advertising? There are still many ways to produce very good quality spots today.

Planning for Print

Small town papers can be a good medium to tell your story. They generally have loyal and devoted readership and you can creatively tell your story.

Have you ever thought of using movie posters? That’s a way you can put your information into the space in a creative manner. There are traditional and non-traditional places to buy or place movie posters. Also, in your local paper, buy a panel and tell your prospects what is on your service in a unique creative way.

Finally, we look at the budget last year. 

It’s always tempting to jut budget this year on what was spent last year. But you should always look to see if there are reasons to increase or decrease spending? More digital marketing might expand your spend for a few years, but start becoming more efficient over time. What is the competition doing? Are you expanding to new areas?

As you ask the right questions you can begin to plan your marketing spend and can design a marketing plan that fit your budget. But as you achieve success with  marketing you can have more confidence each year to spend more.

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