Marketing Strategy & Marketing Management
As a business owner a question always perplexes me. How much should I spend on marketing? This is a frequently asked question to marketing consultants. The answer is that there is not hard & fast rule. It depends on the competitive situation in relation to the development stage of the company, product or service category and the brand advertising conceived. As a result of these factors, the marketing budget can be better decided after careful analysis of a number of factors as part of a marketing strategy. If you’re trying to develop a deeper understanding of your marketing budget, then there are two good places to start.
a) Brand Awareness – Analysis of the level of advertising that is likely to reach target markets with appropriate levels of frequency and credibility
b) Specific response – Analysis of response rates and conversion can be done by various forms of advertising.
Brand awareness is a direct result of an effective marketing strategy. By identifying key target markets and understanding the competitive environment, you can get a picture of the level and nature of brand awareness, the “brand” advertising has generated. Increased brand awareness can mean generation of new customers and reinforce the message with other consumers.