Global Resources Help Businesses Establish a Marketing Budget

CHICAGO - Aug. 26, 2016 - PRLog -- The renowned business experts at Global Resources LLC provide marketing services to aid in growth for small to medium-size businesses.  While a marketing plan will provide marketing goals for your business, a marketing budget helps you figure out practical steps to achieve those goals.  A marketing budget typically covers costs for advertising, promotion and public relations. Each amount varies based on the size of the business, its annual sales and how much the competition is advertising.

Although each business's marketing budget will differ, below are four common methods used to allocate funds:

• Percentage-of-Sales - Allocating a specific percentage of sales is a popular method for developing a marketing budget. The average allocation typically ranges from between 9-12% of the annual budget, while the smallest businesses may go as low as 2%. The main advantage to using a percentage of sales is that the marketing budget will increase, or decrease, with the sales revenue of the company.
• Set Dollar Amount - Many small business owners simply set a flat dollar amount for their marketing budget. Particularly useful for small businesses, they can base marketing budgets on what they think the company can afford instead of the company's sales. Picking a flat rate is usually effective for companies looking at a one-time expense, such as specific public relations marketing or a trade show, and not a long range marketing plan.
• Matching Competitors - A third technique to create a marketing budget is to analyze and estimate what the competition is spending and replicate. This is another simple way to set a budget, since maintaining costs comparable with competitors keeps the business in line with others in the field. However, this method also assumes the competitors are spending the right amount and have a comparable size business.
• Determining Objectives - Often considered the most effective budgeting method, this method uses the objectives in the marketing plan to determine the marketing budget. The budget is developed by estimating the expenditures needed to achieve the desired marketing objectives.

About Global Resources LLC

Global Resources is a full-service business development group and general management consulting firm focused on small and medium-size privately-held companies in North America. We were formed to help small and medium-size businesses maintain positive cash flow, control costs and accelerate profitable growth, allowing entrepreneurs and managers to make the most of their work and their lives. Through business analytics, consulting and strategic tax planning, we are a lifetime resource that offers business owners the freedom to grow.  For more information, visit https://globalresourcesusa.wordpress.com/.