Determining the size of a marketing budget can be challenging, especially for startups and small businesses. Here are some common methods:
- Percentage of Revenue: Many businesses allocate a percentage of their projected or actual revenue to marketing. This typically ranges from 5-10% for established businesses and 10-20% for startups aiming for rapid growth. - Objective and Task Method: This method involves setting specific marketing objectives and estimating the costs of the tasks needed to achieve them. It's a more strategic approach but requires detailed planning. - Competitor Benchmarking: Analyzing competitors' spending can provide insights into industry standards and help set a baseline for your budget.