Should You Be Investing So Much In Marketing?
Marketing. This is something that tends to feature highly in the list of priorities of any business owner - and for good reason. There are countless business operations that go into the successful creation of a product, but marketing is what will create a successful launch and what will ultimately entice people into spending money on the products or services you have on offer. This is where the money is. So, it’s not all too surprising that many businesses invest a lot of their money into their marketing departments or outsourced marketing agencies and the work that they create. But how much of a focus should you really be putting into marketing and is it worth it?
Why Is Marketing So Important?
As we’ve briefly highlighted above, marketing is essential for any business’ success. When you market, you make yourself known. Your brand gains prominence. It becomes to go-to when customers think of what you sell. It encourages brand loyalty. It lets people know you’ve got new releases out. It makes people aware of what you have to offer.
Outsourcing vs. In-House Marketing
There are two main ways to manage marketing within your business. The first is to outsource marketing. This tends to be the option favoured by startups and small businesses. You can outsource to seo specialists, copywriters, graphic designers, web designers and developers, performance marketing companies and more. The perk of outsourcing is that you only pay for projects as and when you need them completed. You don’t have to hire a permanent employee who will be paid their salary whether you have work for them or not. The second option is to build an in-house marketing team. This tends to be favoured by larger and more established companies who have consistent demand for marketing work to be carried out.
How Much Should You Be Spending on Marketing?
At the end of the day, different businesses have different budgets and different priorities. Certain target demographics are more swayed by marketing than others. Marketing can have a different impact - and thus a different value - in some areas than others. Ultimately, this is a question that you’re going to have to answer yourself through data analysis, the support of a financial advisor and wealth manager and a series of trial and error. However, there are averages that you can draw on for guidelines. n the simplest terms, your marketing budget should be a percentage of your revenue. Generally speaking, B2B companies tend to spend between 2 and 5% of their revenue on marketing. B2C companies, ratehr unsurprisingly, tend to have to fork out a little more for their marketing, with most dedicating between 5 and 10% of their total revenue on marketing activities.
As you can see, marketing really should be a big source of investment in your business. It’s worth the money that you pump into it and can help you to maintain a good brand image, customer loyalty and generally generate more profits in the long run.