Building a New Marketing Strategy
As a new business your first marketing approach is important to gain a foothold in your industry, but the likelihood is now its effectiveness is starting to wane and a new approach is needed. If you are beginning to take the step up in to a more rounded approach this article will provide you with information to help you make well informed decisions.
What is the average amount budgeted for marketing?
Deciding on your budget can be difficult especially in margins are tight, but in order to improve time and money needs to be invested into your marketing. In general, a business will spend 6-8% of their revenue on marketing but this can change depending on whether you are a b2b or b2c focused. The first step would to be to undertake market research, to provide a study of your target audience. Then use this focus on an end goal, make it a target that is concrete and can be easily measured. Always stay focused on this end goal and only spend what will reach this goal, just because you might have a larger amount to spend, there is no sense in spending it if it won’t help reach this goal.
Where should you spend your marketing budget?
To get a good rounded approach you should build a media strategy from you research, and while online is definitely the largest market segment and continues to grow, don’t just dive straight into this if your audience isn’t likely to be there. According to a 2018 survey, the average company would allocate roughly 40% of the entire marketing budget simply to online. This would be split down into smaller segments but it is an incredible amount focused into one outlet. This has increased from 29% since their 2014 report.
- Paid Media – The majority of the channels listed in the graph above, constitute paid media. This refers to offsite marketing that requires paid placement. This includes online (PPC, display ads, social marketing) and offline (outdoor advertising, advertorials, magazine placements). These are obviously more expensive than owned or earned media, they are quick and effective ways of reaching audiences in proven ways.
- Earned Media – If, like many new and small businesses, you haven’t got a large budget to spend on paid media, then its vital to build an earned media strategy. Consisting of content rich approaches such as linkbuilding and digital PR, these earned medias build a strong link between you and the search engine as it shows a connection with your business that is offsite. The nature of offsite content builds trust better than onsite content as users are interacting and interested in your company/brand before they have accessed your website. Creating a good balance between these earned media and the intended end results is important in choosing which elements to focus on.
- Owned Media – This refers to anything owned by your company, that you have complete control over. This could be your website, blog, newsletter, magazine and social pages (unpaid). Maintaining a strong presence on these platforms and in the output of your company is a strong contributor to business conversion rates and can help produce content for your earned media efforts. For an approach that only costs the time you put into it, it is a very good resource.
Away from these approached there are other options in order to keep you at the top of your game, such as the power of reviews that provide voices for new consumers to trust. Learn from your competitors approaches, there is nothing wrong with using the approach they have used successfully or modifying it to work for you. Another underplayed card is putting yourself out there as experts and commentators on this subject in the public eye. A well collated and intelligent strategy will always pay dividends and remember that this is an investment not simply an expense.