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    How to Create a Marketing Budget

    Writer's picture: Lauren ThomasLauren Thomas

    How to Create Your Marketing Budget



    My general advice? Work backwards.

    1. Define Your Sales Goals – How many sales do you need?

    2. Identify Your Target Audience – Who are they, and how do you reach them?

    3. Determine the Costs – What will it take to get in front of them?


    For example, if you create custom light fixtures and want to market to interior designers, consider how and where to reach them. Will you attend trade shows? Send direct mail? What are the costs associated with those efforts?


    As you can see, in this scenario, the marketing budget is based more on what it takes to reach the customer than on a fixed percentage or dollar amount.

    Here are some key factors to consider when setting your budget:


    1. Is It a New Product or Service?

    If the answer is yes, expect to increase your marketing budget.

    There’s a reason startups spend a higher percentage of their revenue on marketing—because no one knows who they are yet.


    On average, people need seven interactions with a brand before they trust it. How will you reach that seven-touchpoint mark? Keep in mind that relying solely on social media is a myth. Posting every day isn’t enough.




    2. Are You Selling a Luxury Product or Service?

    You can’t expect people to believe your brand is luxury if your marketing doesn’t reflect it—let alone convince them to pay premium prices.


    If part of your unique selling proposition is exclusivity or high-end appeal, your marketing should feel polished, strategic, and elevated. You need to make potential customers say,"This is a little out of my price range, but I love it more than the others—so I’m buying it."


    If you’re in the luxury space, increase your budget to create a premium brand experience.



    3. Are You Selling a Non-Essential Item?

    A cleaning service, a perfume line, handcrafted wood furniture—these aren’t must-haves. They’re not like toilet paper or gas—things people buy no matter what.

    If your product or service falls into the “want” category rather than the “need” category, prepare to invest more in marketing to convince customers why they should choose yours.




    So, What’s the Right Approach?

    If your budget is tight, it’s okay to work with a set percentage or fixed amount. Just be strategic.


    Prioritize a single marketing channel that aligns with your business’s most immediate needs and start there.


    If you’re unsure about what you need, how much to budget, or want expert guidance in creating a marketing plan, let’s talk.

    📅 Schedule a discovery call today!





    *****


    Lauren Thomas, CEO Limitless Marketing Co.
    Lauren Thomas

    Hi! I'm Lauren Thomas, a marketing strategist and owner of Limitless Marketing Co. My goal with this blog is to make tough topics easy to understand and apply. If you like marketing news and tips, subscribe to the Limitless Marketing Newsletter!







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