Budgeting for Marketing Activities – 6

budget, campaign, Marketing, media

In this last part I would like to take a very short comparison between different types of media and what needs to be kept in mind. I am not an expert on the different media and their costing methodologies. You would be well advised to look at some experts , especially if you intend to go the online and social media way.

So I will start with the physical media like print ads or physical letters or events. The positive about these is that once defined, the prices more or less are constant. So from a predictability perspective this is good. On the other hand, you only come to know the response to your ads or events after the whole thing has taken place.

So if you have targeted to do an event for 100 people and on 10 come on the day when it’s planned, the event has failed and you have spent all your money which was budgeted. So testing with physical media is a lot tougher , time consuming and expensive.

On the other hand with online and social media, you can do simultaneous testing of various ads and also put a limit on your spend while doing the tests or while running the campaigns. You can also stop an advertisement after running it for just one day on most social media platforms.

The downside with social media is that you don’t understand the algorithms that are running behind the selection of the people to whom the ads are being shown and when the site will change the rules / algorithms. So you are at their mercy. However if you have a diversified mix of social media sites giving you results then the whims of one particular site will not impact the business too much.

I hope you gain from these quick tips for doing a budget. Will look forward to hearing your comments.

Till next time then.

Carpe Diem!!!

Budgeting for Marketing Activities – 5

Assumptions, B2B, budget, campaign, Marketing, Marketing Stamina, media, single target market

In the last 4 posts we started with nothing but a napkin and created a rough budget that you can spend every month so that you can hit your target of 10 leads.

While most people you talk to will say Maths is tough, here it’s the reverse. Making 5he budget using math is the easy part. But even if you spend $1600/- on Google or Facebook every month (to understandwhere this has come from, read the 4th part of the post on this topic) , you won’t get leads and you may end the year with no orders but $25000/- gone.

The reason for that , whether you’re using LinkedIn or Google or print ads, these are all only media at the end of the day. Someone has to respond to your ads. If no one responds to the ads then you don’t get the leads.

So you have to test for two things here – if the media is right and if the message is right. My assumption is that you have defined your single target market earlier. If not, then that will be the first step.

Not everyone is comfortable, or using the same media. Some people maybe more comfortable with LinkedIn and not okay with Facebook. In some cases the media you are wanting to use, may not have the ability to target the people who are in your Single Target Market.

Next you have to test your ads to see what gets people to click or respond to an advertisement. You have to change them until you start seeing a response. Then you need to make changes keeping the one that’s getting you a response as the benchmark, or what is called as the “control ” in copyrighting circles.

In marketing there’s no such thing as failure, its all about experiments. So you keep testing various hypothesis till you are able to figure out the best combination of media and message for your market.

Till next time then.

Carpe Diem!!!

Budgeting for Marketing Activities – 4

B2B, budget, campaign, Marketing, Marketing Stamina, media

In the last 3 posts we started with a “back of the envelope” calculations for getting a marketing budget. Then we looked at the complexity of the B2B market with not knowing who is the actual decision maker in these customers. We also spoke of having the marketing stamina to last you for a long time because generally B2B buying is not impulsive.

Now let’s look at what options you have for getting in front of the customers from an economics standpoint. In the post yesterday, I touched on a few of these points.

When selecting the media to reach out to the 1000 prospects, whether you want to use Linkedin or Google Ads or plain print pamphlets or events or banner ads, you have to figure out the economics which will generate the traffic to get you your 10 orders.

If you have been in business for a few years, you would have data on the number of leads needed to get an order. Suppose this number is 10, for keeping the simplicity in our calculations, then you are looking to generate a minimum of 100 leads.

Since we have assumed a lead time of 3 months for an order, we raise this target to 125 leads through the year or 100 leads in 9 months. Therefore if your budget is $25000/- for the year, you can happily spend $200 (25000/125) to get a lead and you have to spend this over a one year period. Which means on a per month basis you can spend about $16/- per lead or overall $1600/- per month on whatever mix of media you want to use.

Now every advertisement you create or every event you do will not be a success. So you have to also account for that process.

Till next time then.

Carpe Diem!!!

Budgeting for Marketing Activities – 3

B2B, budget, campaign, Marketing, Marketing Stamina

In the last 2 posts I have written about how you can estimate a rough budget and then what you need to figure out in the B2B market. In yesterday’s post I again emphasized on the concept of Marketing Stamina.

Today we will look at how you work out the economics of your marketing.

So we know we have $25000 with us, we also know that the lead time to convert an enquiry into an order could be about 3 months (longer if it’s a high value purchase). What we don’t know is that who among your prospects is going to raise their hand to ask you for your product or service.

If we start with a pack of say 1000 company names then you the inevitability principle 500 of them will change their vendor in the next 3-5 years. You only don’t know which 500 of them will and when in the next 5 years. They obviously won’t all happen in the last quarter of the 5th year also.

So we have to figure out a way to be in front of these 1000 prospects continuously. The media you choose can vary – print, PPC, LinkedIn etc. Depending on the demographic profile and the cost of reaching that profile on a regular basis.

What you have to keep in mind that your budget has to last you through the year such that you can get at the least 10 customers.

Till next time then.

Carpe Diem!!!