Andys Blog
Andy Graham is the founder of One
Brand Group. He's positively brimming
with thoughts and ideas, not just about
B2B marketing, but about other things too.
Have a read, or – if you'd prefer to have a conversation – get in touch.
More thoughts here at Andy's site.
Have a read, or – if you'd prefer to have a conversation – get in touch.
More thoughts here at Andy's site.
Failure is not an option - it is essential
29/07/2010
Recession-proofing the marketing strategy
29/07/2010
29/07/2010
Recession-proofing the marketing strategy
29/07/2010
How much do you spend on marketing?
Added 03 December 2006
If you take the holistic and joined up view of marketing that we suggest, then I bet the sum is more than you think. To gain sales, increase share and increase value every company must and does spend money on marketing, to claim otherwise is a company in denial. It seems that most companies spend between 35 to 50% of their revenue on marketing that is if you include:
positioning, strategy, pricing
brand strategy and branding
new product development
market research
Marketing communications
Sales and account management
This appears to be a huge figure, and maybe surprising. May we suggest that you pause and tot up what you spend and where you spend it? It's a significant amount of money. To be successful this is what it takes - anything less is uncompetitive. This begs the next question, are you spending this money in the right place, at the right time for the right return?
If we consider the totality of the budget it gives greater options to change the emphasis - reallocate the budget more competitively. It should be possible to gain more efficiency and greater returns. So often we hear phrases like 'that is just the way it is always been done', or - “our competitors can't be wrong, this is the way we do it in our market…”
Maybe, just maybe, the competitors are wrong -
It is far better that we strive to be more strategically conscious of the marketing choices we make rather than following the crowd. If we do, we maximise our return and align our marketing with the needs of both the market and the business in context and time.
Added 03 December 2006
If you take the holistic and joined up view of marketing that we suggest, then I bet the sum is more than you think. To gain sales, increase share and increase value every company must and does spend money on marketing, to claim otherwise is a company in denial. It seems that most companies spend between 35 to 50% of their revenue on marketing that is if you include:
positioning, strategy, pricing
brand strategy and branding
new product development
market research
Marketing communications
Sales and account management
This appears to be a huge figure, and maybe surprising. May we suggest that you pause and tot up what you spend and where you spend it? It's a significant amount of money. To be successful this is what it takes - anything less is uncompetitive. This begs the next question, are you spending this money in the right place, at the right time for the right return?
If we consider the totality of the budget it gives greater options to change the emphasis - reallocate the budget more competitively. It should be possible to gain more efficiency and greater returns. So often we hear phrases like 'that is just the way it is always been done', or - “our competitors can't be wrong, this is the way we do it in our market…”
Maybe, just maybe, the competitors are wrong -
It is far better that we strive to be more strategically conscious of the marketing choices we make rather than following the crowd. If we do, we maximise our return and align our marketing with the needs of both the market and the business in context and time.