Competition for money in companies is almost always going to be hard-fought between departments and for something like marketing it can be tougher to prove exactly why the money is needed. So, how can I justify more money for marketing?
Business Owners Of Large Companies
We are going to look at this from the perspective of both business owners and marketing departments.
Let’s look at the business owners point of view first.
It really does depend on the size of the company; larger companies will usually have a marketing department and an annual budget.
In the lead up to this budget (most go from April to April, but some will be from January to January) the different departments will meet with the business owner to try and get their fair share of the pot of money.
Any good business owner will want to know what they are paying for. So, if the HR Department show that the company is making a healthy profit, but the current staffing levels are making it a struggle to cope with the workload then it is easy to justify the cost of employing more staff.
For the marketing department, it won’t be as simple as that so they will need to justify more money for marketing using several different methods.
A business owner will likely want to review what was spent in the previous year and see what worked and what didn’t.
Marketing isn’t an exact science, no matter what you have read or been told by any ‘gurus’, so there is always going to be an element of the unknown in marketing campaigns.
It is important to be flexible and for marketing, we would say that if a business owner has regular meetings with their marketing department then adjustments can be made along the way.
This also will help to eliminate any nasty surprises such as “You spent HOW much on TikTok videos last year, Brian??” from appearing.
Smaller Company Business Owners
Smaller companies, by their very nature, are more likely to play it by ear. They won’t have the budget to justify having several departments and lots of staff.
They should though, at the very least, have agreed on goals and a strategy for the year ahead (we would say for the next five years ideally)
This is where planning for marketing budgets will come in, if they are going to launch a new product in August, then they need to work out how much they are going to spend on marketing in the preceding months.
It is all too easy to concentrate on the actual product, which is understandable as it the reason the business exists, but if you are a smaller company then it could be a struggle to get anyone to pay attention and if you haven’t got the cash to advertise then it will be an uphill struggle, to say the least.
So, let’s have a look at how the Marketeers can help justify more money for marketing.
Key Performance Indicators
Key Performance Indicators (KPIs) are used to measure the performance of a business towards its goals.
Most companies will already have these in place, but some may not.
From a marketing point of view, it’s important to really concentrate on the performance of activities that contributes to these goals.
It is easy to get carried away with analytical software and spend time measuring and reporting everything.
Most business owners aren’t going to want to know about how many people in Kuala Lumpur read the blog about trends in trouser length.
They are going to want to know if any of the people in Kuala Lumpur contacted their company and if any of these translated into sales though.
Because KPIs are generally used across the board in all businesses it can make it easier to communicate marketing performance.
There’s a great article from GeckoBoard here that has an in-depth look at KPIs that we would heartily recommend you read.
Also, this video shows you how you can use Excel to create and monitor KPIs rather than paying for additional software packages.
Keep It Simple, Stupid
This memorable phrase dates back to 1960 and was thought to have been created by Kelly Johnson, an engineer in the USA Airforce, and we think that it still applies to this day.
The reason we have marketing is to increase sales.
It is that simple.
If you can show that to a business owner, whether it’s a start-up of the head of a global company worth billions, you are much more likely to get the marketing budget you want.
A ten-minute PowerPoint presentation with graphics that look like the intro to Newsnight and bullet points dedicated to each and every aspect of a marketing campaign may be……entertaining, but is likely to cause confusion and overly complicates a simple question and answer.
Another good tip is to find out what your competitors are spending, if you can say to your boss that they are spending 45k and their sales are going through the roof, you are more likely to get a larger share of the budget for marketing.
We will leave you with some great marketing budget tips from Marketing360.