“How much should I spend on marketing?” is a fairly common question, especially for the new business owners. Some would say that the rule of thumb is to budget 2-3% on marketing and though it will be tempting to just go with that idea, what business owners need to realize is that and the exact number is nearly impossible to be suggested. Why? Because no two businesses are exactly the same.

Therefore, what that means is the real answer to the question “How much should I spend on marketing?” is “it depends”. Because it does. It depends on several factors such as:

  • Size of the Business – this affects how much budget is available for marketing
  • Years in Existence of the Company – businesses that have been around for much longer are expected to have established reputations and a certain following already so maybe only the updating to more recent marketing strategies will be needed. On the other hand, new businesses may need to employ several marketing strategies to get desired results
  • Target Market – differences in age, generation, gender, and sociocultural backgrounds affect what kind of marketing will be used
  • Business Location – some business would need more visibility than others
  • Existing Business Plan – marketing should fit the business plan
  • Business Goals – the mission, vision and branding are needed for marketing
  • Kind of Marketing Strategy to be Employed – various marketing strategies have different costs depending on the effort and time needed to accomplish tasks
  • Where You Will Get the Marketing Service From – marketing firms have varied rates and there are some times when your existing marketing team will be enough to implement marketing changes

Spending on marketing is essential as it gives so many benefits. The easiest ones to spot are the increase in revenue and the heightened visibility. Companies old and new all need some form of marketing. With the constant increase in population, the amount of needs, and the cost of living, it is almost impossible to rely on word of mouth alone. Businesses who hope to grow and not be left behind by the competition need to have a more aggressive marketing plan to survive the changing times. These things all cost money from start to finish. As several business experts would say, “You have to spend money to earn money”.

Maybe at the end of the day, the more important question is “How much are you willing to spend on marketing?”