http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/?utm_source=rss&utm_medium=rss&utm_campaign=the-7-secrets-of-a-good-marketing-budget Opinions. Commentary. News. Sun, 12 Feb 2012 02:23:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25095 Mark Mon, 07 Sep 2009 04:35:21 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25095 Why do you use acronyms like GRP? Do you think it makes you look important? I've been in marketing for 20 years and don't know what GRP means although I can take some guesses from teh article. I did a Google search on GRP and couldn't find it in the Acronyms dictionary. One of the first rules of marketing is to not devolve into technobabble.... Why do you use acronyms like GRP? Do you think it makes you look important? I’ve been in marketing for 20 years and don’t know what GRP means although I can take some guesses from teh article. I did a Google search on GRP and couldn’t find it in the Acronyms dictionary. One of the first rules of marketing is to not devolve into technobabble….

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25094 Mark Mon, 07 Sep 2009 04:35:10 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25094 Why do you use acronyms like GRP? Do you think it makes you look important? I've been in marketing for 20 years and don't know what GRP means although I can take some guesses from teh article. I did a Google search on GRP and couldn't find it in the Acronyms dictionary. One of the first rules of marketing is to not devolve into technobabble.... Why do you use acronyms like GRP? Do you think it makes you look important? I’ve been in marketing for 20 years and don’t know what GRP means although I can take some guesses from teh article. I did a Google search on GRP and couldn’t find it in the Acronyms dictionary. One of the first rules of marketing is to not devolve into technobabble….

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25093 Ziad EL Kerdany Thu, 18 Jan 2007 11:36:24 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25093 I wish it was that easy!!! I wish it was that easy!!!

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25092 M. Pelz Thu, 18 Jan 2007 01:35:50 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25092 What do you mean by GRP ? What do you mean by GRP ?

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25091 Stephen Denny Sun, 14 Jan 2007 17:17:56 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25091 Alain: a few thoughts. If you need to spend 10% on alignment, you need to fire your front line managers. They are failing in their primary jobs, which is managing the people, strategy, and money of their businesses. The relative percentages of research, online, traditional, etc., are highly dependent on the size of your budget. If you're sitting on a $250 million budget, you don't need to spend $25 million on research. It might actually be impossible to spent $25 million on research unless you bought a few firms. Holding 10% in "reserve" is like dangling a flank steak in front of finance. It will just go away and be given to another group with firmer plans. I applaud the idea, but you have to hide that money somewhere. You neglected to mention where most of your money will be parked, namely your channel -- coop, marketing development funds, training your channel, consumer and trade promotion, merchandising, etc. You'll spend at least 50% here if you do business through retail, regardless of your category. Hopefully, if you've done your job well, little of this will be entitlements and most will be driven by you, and will be aimed at revenue increasing activities. You make more money focusing your dollars at the channel than you do at buying more advertising. The vast majority of ad dollars fail to produce a better than break even ROI. I've measured this often in many, many companies and have read a lot widely available research on the subject (but it sure is fun to shoot commericals, let's agree). Design, product management, etc., all (in my world, at least) have fallen in other groups and other budgets. The reality is that you need to focus your dollars on what makes your business grow. Many marketers tend to spend money on things that are intellectually interesting and that don't move the needle. You need to protect yourself from this thinking, experiment frequently with well constructed data traps, and scale up when you hit it right. Good luck! Alain: a few thoughts.
If you need to spend 10% on alignment, you need to fire your front line managers. They are failing in their primary jobs, which is managing the people, strategy, and money of their businesses.
The relative percentages of research, online, traditional, etc., are highly dependent on the size of your budget. If you’re sitting on a $250 million budget, you don’t need to spend $25 million on research. It might actually be impossible to spent $25 million on research unless you bought a few firms.
Holding 10% in “reserve” is like dangling a flank steak in front of finance. It will just go away and be given to another group with firmer plans. I applaud the idea, but you have to hide that money somewhere.
You neglected to mention where most of your money will be parked, namely your channel — coop, marketing development funds, training your channel, consumer and trade promotion, merchandising, etc. You’ll spend at least 50% here if you do business through retail, regardless of your category. Hopefully, if you’ve done your job well, little of this will be entitlements and most will be driven by you, and will be aimed at revenue increasing activities.
You make more money focusing your dollars at the channel than you do at buying more advertising. The vast majority of ad dollars fail to produce a better than break even ROI. I’ve measured this often in many, many companies and have read a lot widely available research on the subject (but it sure is fun to shoot commericals, let’s agree).
Design, product management, etc., all (in my world, at least) have fallen in other groups and other budgets.
The reality is that you need to focus your dollars on what makes your business grow. Many marketers tend to spend money on things that are intellectually interesting and that don’t move the needle. You need to protect yourself from this thinking, experiment frequently with well constructed data traps, and scale up when you hit it right.
Good luck!

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25090 Christopher Sheldon Thu, 11 Jan 2007 04:16:54 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25090 A good read, and in our case certainly not too late. There are serveral key words in your title that we are definately working hard at here in China. These would be budget - yes actually planning a budget is somewhat of a new concept and then these is marketing/sales which is really a new concept to our folks. I already have too many secrets here to deal with so I will not focus on that word. You and your readers should know that we are just beginning with the more traditional forms of marketing media; that eCommerce and internet use is still very low; and that we are searching for our brand story so that we can indeed tell the employees and the guests. However like everything else here in PRC, we are moving along very quickly indeed, growing up in a new international world of marketing. A good read, and in our case certainly not too late.
There are serveral key words in your title that we are definately working hard at here in China. These would be budget – yes actually planning a budget is somewhat of a new concept and then these is marketing/sales which is really a new concept to our folks.
I already have too many secrets here to deal with so I will not focus on that word.
You and your readers should know that we are just beginning with the more traditional forms of marketing media; that eCommerce and internet use is still very low; and that we are searching for our brand story so that we can indeed tell the employees and the guests.
However like everything else here in PRC, we are moving along very quickly indeed, growing up in a new international world of marketing.

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25089 David Carlson Tue, 09 Jan 2007 20:26:40 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25089 What about spending a part of the marketing budget on design and innovation? Communicating through products are underrated. What about spending a part of the marketing budget on design and innovation? Communicating through products are underrated.

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25088 Paul Barsch Tue, 09 Jan 2007 19:43:28 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25088 Alain, I like the idea of reserving some the marketing budget for "experimental" tactics, however I'd probably pick just 1-2 tactics and make sure they aligned with an existing marketing program. The 10% you allocate to aligning people to your strategy could also be termed "internal comms" and is easily overlooked as far as importance in the marketing budget. Last note, this might be difference of opinion, but I wouldn't keep any money in reserve. I'd spend every last dime and I'd do it in the beginning of the year. We all know marketing budgets tend to get cut, and thus I'd spend it all early and often--of course on programs that drive revenue for the company. The risk is that you miss those "opportunities that crop up" however I'd balance that risk quite nicely with the high probability that marketing budgets will be cut mid-year. Alain, I like the idea of reserving some the marketing budget for “experimental” tactics, however I’d probably pick just 1-2 tactics and make sure they aligned with an existing marketing program.
The 10% you allocate to aligning people to your strategy could also be termed “internal comms” and is easily overlooked as far as importance in the marketing budget.
Last note, this might be difference of opinion, but I wouldn’t keep any money in reserve. I’d spend every last dime and I’d do it in the beginning of the year. We all know marketing budgets tend to get cut, and thus I’d spend it all early and often–of course on programs that drive revenue for the company. The risk is that you miss those “opportunities that crop up” however I’d balance that risk quite nicely with the high probability that marketing budgets will be cut mid-year.

]]> http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/comment-page-1/#comment-25087 Lewis Green Tue, 09 Jan 2007 18:23:05 +0000 http://www.mpdailyfix.com/the-7-secrets-of-a-good-marketing-budget/#comment-25087 Alain, Thank you! I believe all of us, from large corporation to entrepreneur, spend too little time creating, executing and managing marketing budgets. I am especially pleased that you listed "Spend 10% on aligning the people in your organization to your strategy." I believe this is the first and last step to marketing success, and that it requires a 24/7/365 effort. Alain,
Thank you! I believe all of us, from large corporation to entrepreneur, spend too little time creating, executing and managing marketing budgets. I am especially pleased that you listed “Spend 10% on aligning the people in your organization to your strategy.” I believe this is the first and last step to marketing success, and that it requires a 24/7/365 effort.

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