This article is for anyone who is thinking about their marketing budget for the next year. Whether it's for the first time, or more experienced entrepreneurs, they're looking for advice on typical trading costs and how to determine which ones to keep, increase, or decrease.

Here's how to create a solid marketing budget that will help you create a marketing plan and make sure that all the money you invest is paying off.

• Marketing costs for new companies and retail(at )
• Are common marketing expenses
  • Brand development
  • Search Engine Optimization
  • Social media marketing
  • contextual advertising
  • Content Marketing
  • Email Marketing
• Freelancers and employees

Marketing costs for new companies and retailers

Marketing costs in various types businesses can be very different. Use the following tips and statistics for startups and retailers on how much of your actual or projected gross revenue should be dedicated to marketing.

• Small businesses with an annual income of less than 5 million rubles should allocate 10-15%.
• Startups in most industries typically use 15-20% for marketing.
• Brand building retailers spend up to 20% of their sales revenue on marketing costs.

To succeed in promotion, you need to allocate a certain budget for marketing, and not use the money left after paying other expenses. You also need to focus on creating a solid marketing strategy that includes analytics to determine which marketing strategies generate the best return on investment () so that marketing investments are used effectively.

General marketing expenses

Now it's time to move on to detailed analysis the most common marketing costs, which are usually present in the budget of everyone, from small businesses to large companies.

Brand development

For start-ups and new businesses, the first selling expenses will be associated with establishing their business brand.

• Domain. The cost of your own address on the network (vashadres.ru) will usually start at 500 rubles per year, depending on the extension chosen. Accessible.ru will cost $14/year, while specialized extensions (yourdres.camera,yourdres.glass,yourdres.kitchen,yourdres.shoes, etc.) will cost up to $3000/y. It is worth noting that if the desired domain is not available, it can be redeemed for hundreds or even thousands of dollars.
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• Website - Those who choose can expect to spend in the range of 300-3000 per month depending on the features present on the site.
• Logo design – The first thing that most startups need is a logo, as it will be included in almost all offline and online marketing assets. Fortunately, its development can be quite affordable.

Search Engine Optimization

Search Engine Optimization (SEO) is an ongoing process vital for any business that wants to reach customers in organic (unpaid) search on Yandex, Google and other search engines. Search engine optimization can be boiled down to three main tactics: internal optimization, external optimization and monitoring.

Social media marketing

One of the best things about social media marketing is that it's free to use, as long as you don't run ads. Your time will be the biggest investment you can make. Marketing activities include creating social profiles, posting new content, building an audience, and interacting with them regularly.

With this in mind, the investment of time can be substantial, as most companies maintain an active presence on the major social media platforms. Needless to say, the social media marketing strategy will also be continuous. Fortunately, you can use special applications to make it easier to manage and update your social media accounts.

One of the costs commonly associated with social media marketing is a management tool that helps you post and track activity on every social network in one place. To automate these processes, you can use a tool such as Buffer. For beginners, they have a free plan that allows you to publish up to 10 posts at a time.

Analytics tools social networks are also popular among top marketers. The best choice for small businesses with limited marketing budgets, there will be built-in analytics for business profiles and pages on each of the major social networks. To get better results, you need to invest more time in creating quality content and engaging your audience.

contextual advertising

Both search engines and social networks offer PPC (Pay Per Click) advertising options. PPC allows you to reach new customers by paying for space on search engine results pages, social media feeds, and sites and apps that are part of their advertising system. PPC is well-suited for companies that want to find new customers while they rank up in organic search through optimization and organically find an audience on social media.

PPC spending will depend on the number of new users you need to reach, how you need to reach them, and how well your ad campaigns are optimized for conversions. For example, if a business is not interested in search engine ads but wants to reach an audience on social media, they can pay for ads on Facebook (which also includes Instagram) and Pinterest. All of these networks have advertising options that will allow you to reach new customers directly through their newsfeed.

To get the most out of your PPC budget on any network, you need to do the following.

• Define your target audience () as precisely as possible.
• Use a specific landing page for the target audience and product the ad is being created for.
• Create text, images and videos (if possible) for your ad that are focused on getting a specific target audience to click through to a landing page for a specific product or service. You also need to make sure that the text, images, and videos blend harmoniously with the landing page.
• Measure the results of each PPC campaign, compare with other PPC campaigns and find which ones are generating the best results (more sales), then focus your budget on winning campaigns and networks.

Content Marketing

Content marketing is an ongoing strategy that involves creating new content to attract new customers. Most businesses start with blog text posts, but you can also create e-books, infographics, presentations, podcasts and videos as part of the content marketing activity.

The main ways the company reaches new customers with content are through organic search, social media shares, and retargeting blog traffic with PPC ads. Ideally, each piece of content should be optimized for keywords who are looking for ideal clients to get more visibility in the search. You can also attract new customers due to the fact that the content is shared on social networks.

Depending on the type of content being created, marketing costs may vary. Some companies create content themselves, while others hire freelancers and agencies to create and promote new content.

You can spend more on PPC if you choose to promote your content to new customers through search engine and social media advertising. You can monetize your blog content with retargeting ads for users who have visited your blog. After visiting the blog, customers will see a product ad on Facebook or Google, depending on the choice of advertising platform. If the content and products belong to a specific niche, you can generate sales from qualified traffic.

Email Marketing

Email marketing is a surefire way to reach current and potential clients who shared their email address when purchasing or subscribing to site updates. This allows new customers to be reminded of their product selection, and repeat customers to come back and look at updated inventory.

One of the main costs of maintaining an email marketing campaign is the service that maintains the mailing list and helps you send emails to the people on that list on a regular basis.

Some of the most reliable, affordable and flexible email marketing services include the following.

• Mailchimp - Free to use up to 2000 subscribers and 12000 emails per month. For more subscribers, emails and features, plans start at $10 per month.
• Aweber - Plans start at $19 per month for up to 500 subscribers with unlimited emails.
• Constant Contact - From $20 per month for up to 500 subscribers.

Since most email marketing services offer a free demo, you can try them all and pick the one you like best. In particular, you need to look at whether it is easy to create letters for your subscribers there.

Freelancers and employees

There are two ways to find experts to help with marketing. You can hire freelancers for temporary work or as needed, or hire staff to permanent job. For beginner businessmen the best option there will be freelance services.

If a company decides to hire an employee for a permanent job, he will need to pay a salary based on education, specialization and experience. Here are a few marketing positions, descriptions, and salaries that can match a company's internal marketing needs.

• Marketing Coordinator– The average salary is 150,000 per month. They are responsible for developing and executing marketing and advertising campaigns for products and services, tracking sales, creating promotional materials, planning events, maintaining existing and potential customer databases, and creating reports.
• Digital Marketing Specialist- average salary - 30-100 000 per month. They are responsible for one or more marketing strategies, including search engine optimization, social media marketing, PPC advertising, display advertising, and other digital marketing tasks.
• Marketing Manager- average salary - 20-50 000 per month. They are responsible for developing and executing marketing strategies for the business.

How to create a marketing budget

Now that you have an idea of ​​the types of costs that you need to include in your marketing budget, you can start creating it directly. The easiest way for small businesses is to use spreadsheet Google Sheets or Microsoft Excel.

Budgets vary for different brands and niches. One entrepreneur can add free apps Digistra, while another store will invest in paid applications. Investing money in a second business will usually result in different budget than the first store.

It may turn out that after including all the necessary marketing costs, additional costs can be added. By experimenting with the costs associated with a potential new employee or freelancer, a social media tool, an email marketing service, one can get an idea of ​​what the overall marketing budget will be, monthly and yearly.

marketing budget control distribution

Marketing budget - a section of the marketing plan of the enterprise, reflecting the projected values ​​of income, costs and profits. The basis for developing a marketing plan are operational plan and developed programs of action.

Marketing budgeting helps to properly prioritize goals and strategies marketing activities, make decisions on resource allocation, exercise effective control.

Both the management of the firm and the managers of the main functions, which are to some extent affected by the marketing plan, take part in the preparation of the budget.

The approved marketing budget is the basis for the procurement of raw materials and materials, production planning, labor resources and marketing activities.

Adjustment of the marketing budget is carried out during the revision of the marketing plan according to the control plan or in the course of the enterprise's activities as necessary.

When developing a marketing budget, two schemes are used. The first is planning based on target profit indicators. The second is planning based on profit optimization.

Consider the first scheme in stages:

• 1. Estimation of the total market volume for the next year. It is formed by comparing growth rates and market volumes in the current year.
• 2. Forecasting market share in the coming year. For example, maintaining market share, expanding the market, entering a new market.
• 3. Forecast of sales volume in the next year, that is, if the market share is n% -, and the predicted total market volume in natural units is m units, then the estimated volume will be X units.
• 4. Determination of the price at which the goods will be sold to intermediaries (price per unit).
• 5. Calculation of the amount of income of the planned year. It is determined by multiplying the sales volume by the unit price.
• 6. Calculation of the cost of goods: the sum of fixed and variable costs.
• 7. Forecast of gross profit: the difference between gross proceeds (income) and gross cost of goods sold.
• 8. Calculation of the benchmark target profit from sales, in accordance with the planned profitability ratio.
• 9. Marketing expenses. They are defined as the difference between the sum of gross profit and the target profit according to the plan. The result obtained shows how much you can spend on marketing, taking into account the cost of taxation.
• 10. Distribution of the marketing budget for the following components of the marketing mix: advertising, sales promotion, marketing research.

The second planning scheme is based on profit optimization. Profit optimization requires firm management to clearly understand the relationship between sales and the various components of the marketing mix. The term Sales Response Function can be used to provide a relationship between sales volume and one or more stages of the marketing mix. The sales response function is a forecast of the likely volume of sales over a certain period of time under different cost conditions for one or more elements of the marketing mix.

A preliminary assessment of the sales response function in relation to the activities of the company can be done in three ways: statistical, experimental, expert.

In accordance with the principles of budgeting at all levels, the following items of income and types of costs are mandatory for rationing, planning and control.

Income - planned sales (in natural and value terms).

Costs - planned costs. Main types of expenses:

• a) Variable selling expenses:
  • 1) commissions to sales intermediaries;
  • 2) delivery by own transport;
  • 3) bonuses;
  • 4) other variable business expenses;
  • 5) variable costs for the implementation as a whole.
• b) Semi-fixed selling expenses:
  • 1) advertising;
  • 2) sales promotion;
  • 3) market research;
  • 4) wage sales personnel with accruals;
  • 5) travel expenses;
  • 6) other semi-fixed selling expenses;
  • 7) semi-fixed costs for the implementation as a whole.

Table 1. Marketing budget of Chelyabinskaya Poultry Farm JSC.

Marketing budgeting helps to correctly prioritize the goals and strategies of marketing activities, make decisions in the field of resource allocation, and exercise effective control. The costs of implementing the individual elements of marketing presented in the budget are derived from the detailed marketing plan.

We will draw up a quarterly marketing budget for various product groups and customers. The table below shows the marketing budget for small and large sales-oriented marketing. processing enterprises, taking into account the planned income.

Table 2. Quarterly marketing budget.

Table 3. Planned income.

As a result of the compiled tables, it can be seen that the costs of marketing activities are quite high. But with the help of marketing research and advertising - promotion and marketing of products will be most effective, which will cover costs. Of course, there is an opportunity to reduce these costs by choosing the most optimal and cheapest types of product promotion. Or spend advertising companies during periods most profitable for marketing (since agricultural products are seasonal in particular). During periods of decline in demand, you can only remind yourself, it will be enough here: mailing lists by e-mail, telephone conversations with consumers. The highest costs are advertising on television (placing banners, commercials, etc.) if you limit quarterly releases, and let's say such advertising is done once every 6 months, then you can save about 30,000 rubles. But there should be advertising, because "Advertising is the engine of trade!".

The marketing budget is compiled every year. At the same time, the budget should be adhered to throughout the year. This will help to avoid any unforeseen situations when executing the marketing plan.

Can you live without a marketing budget? You can live. But not for long if you small company, and a little longer if the company is large.

What is this budget for? To understand how much money you spend on attracting and retaining a client, how much it costs you to contact one client, how much profit this client brings, and what is the difference between costs and income.

Ideally, all this describes the marketing budget. Yes, not all marketing and advertising expenses are explained in terms of customer acquisition cost effectiveness. But the fact that everything that happens is subordinated to this goal is beyond the shadow of a doubt.

So, you are the person who makes the marketing budget.

It would be a mistake to think that in preparation you are responsible for it directly to the CEO of the company. Yes, sometimes it is. But if you dig deeper, then the board of directors, who hired this CEO, comes into play. Keep this in mind when budgeting.

In addition, the concept of profitability marketing tools often blurred, even more often - generally obscure to those who have not delved into the field of marketing. Remember, your CEO will have to defend the spending plan to the board of directors, so your budgeting logic should be as transparent as possible.

rule1 . About friendship with financiers

Be sure to make friends with financial director. Senior financial manager. Leading financier. It doesn't matter what they call him in your team and what his nominal position is. The main thing is that it should be a person who knows the principles of budgeting in the company and is responsible for them.

I do not feel like explaining the fundamental things described in textbooks for "non-financial managers". Pseudo-scientific and theorizing when laying out the budget for me, for example. plunge into lung condition shock: I myself try to simplify everything as much as possible. Experience has shown that simplicity of presentation and a clear logic in the formation of a budget document are very important.

Rule 2. About the logic of the budget

In one of the companies where I worked, there was simply no budget for the current year. It was coordinated in higher instances, and there was no deadline for approval. All payments were made according to the principle “let's have a project – let's see if there are funds for it”. I had to urgently establish interaction with the financial director and the budget controller. Since the financial director had the final understanding of the general state of the budget, and the knowledge of the availability of money was with the budget controller, it was possible to obtain information about the funds without unnecessary losses and launch marketing projects on time.

The budget logic should:

– And be extremely transparent

– Be understandable to a person far from marketing

Rule 3. About the true goals of the company

When budgeting, it is important to stick to the true goals of the company, even if they are not spelled out in the strategy. Moreover, the strategy itself may simply not exist. This happens very often.

Talk to everyone who was responsible for preparing the strategy. Specify what indicators the company plans to achieve in reality. This may take more than one month. Unfortunately, in large organizations, even new tops are not immediately allowed into the “inner kitchen”.

In general, if you are a beginner and you need to make up an annual budget, immediately drop the article and go get acquainted. Perhaps you'll get lucky.

This is rule number three: know the company's goals exactly (especially if they are not declared or are very different from those included in the strategy). And you need to get acquainted with a person who can clearly explain them.

Rule 4. About clients

And so, armed real goals and having enlisted the support of experts, you sit down to make up the budget. Where to begin?

Best of all - from the portrait of the client. Determine gender, age, specific behavior and habitat. Explore media relevant to your audience. Remember who your real customers are. Don't build a b2b story where a b2c story is needed. And don't forget who evaluates the quality of your spending.

This is rule number four. Study the client and identify their favorite media.

Rule 5. About media channels

Study the media themselves and the cost of contacting a potential client with each specific media. If you look at the country as a whole, regardless of the specific audience, then we have TV and digital in the top. According to RACA (comparison of the 1st quarter of 2014 and 2015), the non-banner component of the digital market has grown from all types of advertising. The rest of the media slowed down and went negative. This is partly due to the crisis and increased spending for the period of the Olympics last year. But the upward trend in online advertising is hard to ignore in any case.

At the same time, the digital market is actively growing mobile advertising. Share of requests from mobile devices in 2015 only for the 1st quarter increased by 10% compared to the previous year.

Presentation of Naked Digital Truth by Andrey Chernyshov, Vice President for Strategy at Dentsu Aegis Networks (Change Consciousness conference)

Now let's go through the rest of the media. What remains? Radio, outdoor, BTL communications and offline press.

How modern marketing looks at the use of these media? Looks normal. Depends on the objectives of your campaign, of course.

Outdoor advertising. Whether you need it or not - decide for yourself. It is believed that she has one of the cheapest contacts with a potential consumer, but it is difficult to say which of those who saw the advertisement actually responded to her.

Separate story - advertising signs and outdoor advertising near shopping and entertainment complexes. If the advertised product / service is located next to the information carrier, you can try this tool. But I increasingly consider the mass purchase of billboards and city formats in cities to be pointless.

Radio. Flexible tool for specific purposes. You can reach a business audience, especially if the station is popular in its segment. For b2c try joint competitions, interesting formats, but direct advertising is again a big question.

BTL-advertising. This includes events, conferences, promotions and other ways to connect with the audience. Many include souvenirs in this expense item. If ongoing events give you contacts and subsequent profits, work with them.

Printed press? - Wave your hand to her. Seriously. Market printed press is rapidly declining, and in the next few years, in my opinion, only extremely specialized publications for paper lovers will remain. Well, TV guides. You can work with them.

If we talk about the division of media channels in the budget, then everything changes very quickly.

Until five years ago, when we launched the Disney Channel on cable, we were spending quite a bit of money on an outdoor campaign. And it turned out to be justified - the channel very quickly entered the top in terms of its audience. The campaign was rather targeted, but it worked perfectly. Last but not least, due to the fact that in all cities where such an opportunity was available, creatives included a visual reference to the symbol of the city. Not necessarily formal, the main thing is that it be known to the residents. By this, we immediately made it clear that the channel was our own, close and understandable. In the regions, such things are extremely positive. In addition to being creative, of course, we worked out the geography of media placement very well, placing them at key interchanges, intersections and at exits / entrances to large areas. Advertising in TV guides also worked well.

Naturally, if the launch took place now, then the share outdoor advertising in the budget would have been significantly reduced, and TV guides should have been seriously considered.

How much money to budget?

You can use the "from the task" method, defining exactly what the company wants to achieve. This will be helped by the company's goals (see Rule 3), as well as an assessment of the number and quality of potential customers that need to be attracted to achieve these goals.

The marketing budget in numbers is the flattened cost of acquiring one customer (the number of contacts that need to be bought for this) multiplied by the number of required customers acquired.

In fact and in experience, everything is very different. Somewhere marketing is formed spontaneously, somewhere a percentage of the turnover is given out, somewhere - according to the residual principle, and somewhere - according to the method of substantiating each expenditure.

In the companies where I worked, most often the budget was formed as a percentage of the company's turnover. Within this percentage, spending on key marketing campaigns for a certain period was sewn up. Usually media is the most expensive part of the budget. In video game companies, significant funds were spent on events and exhibitions, while relatively little was invested in traditional media tools. On TV channels, the largest part of the budget was allocated to traditional media (including online communications).

A lot can be said about budgeting. But not within the framework of a review article. Each market has its own specifics, not to mention the organization and structure. Budget wisely, ask questions, and try to learn the basics of Excel if you haven't already.

Next, a marketing budget is developed, the preparation of which helps to correctly prioritize the goals and strategies of marketing activities, make decisions in the field of resource allocation, and exercise effective control (Table 7). The costs of implementing the individual elements of marketing presented in the budget are derived from the detailed marketing plan.

The marketing budget is detailed for different groups of products and consumers ( target markets). Typically, when developing a budget, an approach called "planning based on target profit" is used.

In this case, the marketing budget is developed in the following sequence:

1. predictive estimates of market capacity, market share, price, sales revenue, variable and fixed costs are determined;

2. Gross profit is calculated, covering all costs, including marketing costs, and providing a given value of the target profit. Z

3. then the variables are subtracted from the gross profit and fixed costs, as well as the value of the target profit.

In this way, marketing costs are determined. Marketing costs are disaggregated by individual elements of the marketing mix.

CONTROL OVER THE IMPLEMENTATION OF THE MARKETING PLAN

How the company organizes practical implementation its plan is just as important as how it develops its marketing strategies and programs.

To effectively monitor the progress of a marketing plan, marketers must first remember their goals, set standards to measure progress towards them, measure the effectiveness of marketing programs, diagnose results, and then make adjustments if the results achieved do not meet expectations. This is the process control for the implementation of the marketing plan(marketing control). As can be seen from Figure 4, this process is iterative: as strategies are implemented, evaluations results achieved and bringing them in line with the expected results, marketers must be ready to repeat the path already traveled again and again. Such a process is used by companies to analyze the practical implementation of their marketing plan based on indicators such as market share captured by the company, sales volume, profitability and productivity.

Put--> Install --> Measure--> Diagnose--> If necessary, marketing goals standards effectiveness results make adjustments to marketing programs

Figure 4- Monitoring the implementation of the marketing plan

The following table shows the types of controls.

Table - 8 Types of control

Thus, the development of a marketing plan ends with the control stage.

Summing up, let's say that the volatility and complexity of the factors of the marketing environment, the concentration of production, which have led to increased competition in many industries, further complicate the marketing planning process for many companies. In preparation for it, marketers must have certain professional and organizational knowledge and skills (some of which are listed below). In addition, they must be ready to use all the basic tools of marketing and the practical application of the fundamental principles on which marketing in the 21st century is built.

Questions for revision and discussion

1. What is marketing planning, its importance for the enterprise?

2. Is there a difference between strategic and marketing plans?

3. Identify the main stages of strategic marketing planning and explain how they are interrelated.

3. Comment on the content of the SWOT analysis and explain how its results influence the choice of marketing goals and strategies.

4. For a firm you know, conduct a SWOT analysis.

5. Describe a range of threats and opportunities businesses face fast food e.g. McDonald's Russian market. How should these enterprises respond to this in terms of the choice of marketing strategies?

6. Which of the stages of the marketing activity process (planning, implementation of the plan and control) is the most important?

7. Why do many companies choose a diversification strategy? Give examples of diversified companies.

8. What marketing planning methods are used depending on the planning stage?

9. What factors have the greatest influence on the ability to effectively execute a marketing plan?

10. In what cases is it advisable to develop special programs in the field of marketing activities?

11. Why is the approval of marketing plans carried out by senior executives?

12. Situation 1

Irbit Motorcycle Plant "Ural"

As a result of the restructuring, the plant is being revived. But it is necessary to determine its position in the market, development prospects. For this, market segmentation was carried out.

· Segment of highly competitive markets of the USA and Europe (90%). Passed technical and ecological certification. restored trademark"Ural". Established work with distributors (packaging for dealers, after-sales service). Looking for new niches - countries Latin America, Australia. It turned out, for example, that a three-wheeled cargo Ural is very attractive for golf clubs.

· Russian segment - still like a means of transportation, but expensive. Credit develops. Niches - government agencies, police, border guards. For prospects, a new image of a “luxury item” is being formed

Segment of shares "Retro" - stylized under the 1930s

· Attention to the fast growing segments of light motorcycles and scooters.

1) Determine which stage of the marketing plan this situation describes.

2) Develop a further continuation of the marketing plan: what goals should be set, what strategies should be chosen for each market segment, what to include in the marketing budget, how to monitor its implementation.

13. Why should a business develop a marketing plan?

Competitive advantage is the unique difference

be implemented within 6 months.

Reliable Development Team

Marketing Management Reference

How many spend for marketing and advertising

What questions will you find answered in this article?

• What costs should be included in marketing
• Which method to choose to determine marketing budget
• What numbers to focus on when approving marketing budget
• How to calculate marketing budget

Correctly calculated marketing budget will allow the company not to lose its market share and at the same time not incur additional costs. Definition task marketing budget relevant for all companies in the structure of which there is a marketing department or other service that performs marketing functions(more details about the tasks solved by marketing departments.
What is included in marketing costs
Marketing costs are all the costs a company needs to carry out its marketing activities. They can be divided into three types:

• Organizational costs (creation and maintenance of the marketing department).
• Strategic marketing costs (strategy development).
• Tactical marketing spending.

Although the cost of organizing and strategizing is much less than advertising (included in tactical marketing), the costs of the first two types are extremely important, and the problems associated with them must be considered separately. The solutions proposed in this article will concern only the cost of tactical marketing(*) .
In general budget investment in tactical marketing is divided into four large blocks (see Cost Items for Current Marketing Activities).
How to determine marketing budget
Cost items for current marketing activities
1.Costs for traditional advertising.
This is the placement of paid information about the company, its products or services in the media, as well as the use of various advertising media for these purposes. This usually includes the cost of TV advertising, advertising on radio and in the press.
2. The cost of direct marketing (direct marketing).
These costs are made up of the following:

• sale through a network of distributors;
• postal, electronic and fax distribution;
• telemarketing;
• Express delivery;
• catalog sales.

3. Sales promotion costs.
These costs provide:

• organizing the work of showrooms;
• free distribution of demonstration samples;
• presentation of new types of products (or a new brand);
• reduction in product prices;
• holding sales, contests, lotteries, coupon discounts;
• participation in exhibitions and fairs, organization of visits to the enterprise, etc.

4. Research costs

• market,
• competitors
• consumers.

Sometimes the goal of marketing is formulated quite vaguely: “To be known about us ...” The task can be specified (made quantitatively measurable) by answering How many questions:

• Who should know? Determined the target audience, its size.
• What exactly do consumers need to know? The object is set advertising(products, services, novelties, company image, terms of cooperation, unique selling proposition, etc.).
• What will it give us and in what time period? It is specified during what time the task will be solved, how it is related to sales volumes and profit.

In my opinion, planning budget all goals must be quantifiable, otherwise it is impossible to evaluate achievements or allocate resources. Usually, slogans are formulated rather than goals; in 90% of cases, marketing tasks sound like “we will give advertising"," let's carry out the action. Instead, you need to plan to achieve specific goals (for example, attract 1000 new customers using advertising in the specialized press).

Speaks CEO
Vladimir Kiselev | General Director of CJSC "Company SHERP", Moscow
From my point of view, all costs associated with the promotion of the product and brand are marketing. Therefore we are in budget for marketing, we include expenses for the following events and activities:

• marketing research;
• advertising and PR;
• promotions (presentations, seminars, conferences, etc.);
• work with agents;
• providing sales support tools (website, booklets, souvenir products etc.);
• direct sales.

When forming marketing budget We are goal oriented first and foremost. The first question is: “What do we want to achieve?” (setting goals and justification). Second: "How to achieve this?" (marketing planning, determination of specific activities to achieve goals). Third: " How many it costs?"
Now our main goal is to bring to the market fundamentally New Product. For this, we are ready spend so many, How many will be necessary.

Step 2. Choice of method
Methods of determination budget for marketing are shown in Table 1. The most common method is to determine budget as a percentage of the expected (or achieved) sales or profits. This method is quite simple and at the same time accurately reflects the main goal of tactical marketing - increasing sales. Also very popular methods of planning "according to the residual principle" and in comparison with the costs of the leader or the nearest competitor. A case can be cited as an example. Thus, one diversified company, which also provides advertising services, for three years in a row determined budget for marketing in the amount of 5% of the annual turnover, explaining this by the fact that in the law on advertising 5% of the turnover is attributed to the cost price.
Case Study
The Toyota concern is going in the next three years to spend almost half a billion euros for the promotion of Lexus cars in Europe. Through aggressive marketing, the Japanese hope through How many years to sell up to 100,000 cars a year (now - 20,000), that is, to increase sales by five times. Marketing costs will also increase fivefold, by 150-170 million euros per year.
All these methods of determining marketing costs are logical and consistent, but they are best used in combination.
At integrated approach all five methods can be used to estimate marketing costs (similar to company valuation, when three independent methods are used).
Methods of determination marketing budget. Table 1

Step 3. Determining the amount of costs (*)
Western marketers believe that specific gravity marketing costs in the cost of traditional goods in developed countries is about 25%, and new products - up to 70%. Considering profitability, we will get a basic share of marketing costs for traditional products in the range of 10-15% of sales revenue. In Russia, the share of marketing costs should be considered in the amount of 1 to 5%, that is, on average, 3% of revenue. This, of course, is an indicative indicator, but it can be taken as a baseline.

In preparation marketing plan, the marketing costs of the previous year are correlated with the sales results obtained. Depending on the indicators of the previous period and taking into account the changes that have occurred on the market during the year, we set tasks that need to be solved in the new year (rebranding, launching new service, occupation of the formed market niche or strengthening of existing positions). Size budget usually amounts to 3-5% of turnover.

How marketing costs depend on goals. table 2

How marketing costs vary by industry. Table 3

Depending on the specifics of your company's activities, the above algorithm for determining marketing budget can be supplemented and refined by marketers. Eg, marketing budget there will be much more companies operating in the service sector than those selling goods: in the first case, it ranges from 30 to 50% (and more) of the company's turnover. Table 4 shows the ratios showing the differences in marketing costs in industrial and consumer markets.
How marketing costs vary by market type. Table 4

Step 4. Cost allocation
Distribution marketing budget for the main cost items depends on the industry in which your company operates, on the strategy for solving marketing problems and the type of market.
Costs for advertising some companies

If your business is not built on any one type of marketing (you do not, for example, rely solely on catalog distribution), the costs can be distributed taking into account the following ratios (Table 5).
Distribution of marketing costs by main items. Table 5

Grade efficiency marketing costs

The final indicator of marketing activity is the company's turnover or sales revenue. But, for example, at the initial stages of bringing a product to the market, it is more important to achieve a certain awareness of consumers and form a favorable image of the product (or service). Therefore, at each individual stage, to evaluate efficiency marketing costs, it is advisable to use different indicators, depending on previously formulated (quantified) goals. The goal itself should serve as the main indicator efficiency: reached the goal, which means that they effectively planned the costs and implemented the plan, did not achieve it - adjustments are needed.

During the development and approval marketing budget our marketers work very closely with finance department. Marketing specialists write a plan, which is then coordinated with financiers. Marketing budget is built on the basis of a percentage of the company's turnover: a fixed percentage is allocated for the activities of the department (from 3 to 5% depending on the tasks for the year), then marketers plan an internal redistribution of funds by cost items (attracting and retaining customers, traditional advertising in the regions, marketing promotions). If previous years were successful and we do not see the need to increase budget, the allocated percentage of turnover remains the same. Our company operates in a developing market, and in proportion to the growth in turnover, marketing costs also increase: if last year I had a turnover of one million, and this year I sold products for two, then budget is doubled.

In a situation where the percentage of turnover remains the same as in the previous year, the task of the marketing department is to increase efficiency costs: having spent the same 10 thousand, the department should provide not 100 thousand customer calls (as last year), but 120. And if last year 22% of customers who called for the first time ordered windows, then this year this figure should increase to 30% . How they do this is determined by the director of marketing and advertising. He analyzes the work of the department, draws conclusions about the successes and shortcomings, decides what is worth repeating and what needs to be done better. I believe that the marketing department should work more efficiently every year, since experience is emerging and it is already clear from practice how best to proceed. If my marketers spend the same amount and give the same volume of orders, they are worthless.