How Much to Invest in Marketing
Product marketing is extremely important to get the consumers attention. Nearly 8% of a company’s yearly budget should go to marketing according to several studies. If your business brings in 5 million dollars annual then your marketing budget would be $350,000 a year, $30,000 a month and if you are trying to market a consumer based product then your marketing budget could go up to $84,000 a month or 20% of your budget. This budget is so important because, if you cannot reach your target consumer then you will not become a successful in selling your product.
Consumer Based Marketing
Marketing products that are consumer driven take large budgets. You have to market the product in places where the consumer is going to see the product and be driven to it. In grocery stores packaging of the products is extremely important; colors, fonts, size, shape of the packaging can either get a consumer to pick your package up to buy or completely ignore it and move on the next product that is more appealing. Companies that have a lot of competition spend millions of dollars each year to make sure that the consumer chooses their product over the competition. They not only market their product with their packaging but, also market their product by thinking outside the box.
A great example is the Frito-Lay company. They spend millions of dollars each year marketing their products. They select commercials that are appealing to the consumer and advertise their products i.e. Doritos during high television times such as the super bowl. They maximize their target by reaching them at a time when they are spent watching their television and eating their product. The Frito-Lay company has also recently joined forces with another consumer based company; Taco Bell. Taco Bell now not only advertizes their tacos but, also that they have taco shells made by Doritos and the companies most likely have an agreement that share the marketing costs.
While the price of consumer based marketing may seem very high these, well established companies are able to afford the cost of marketing and still make a very sizable profit. As the population continues to grow more and more consumers are there to buy your product and without marketing they will not know that your product exists.
Starting Out Small
When starting to market your product you need to have a plan. You need to do research and figure out who is your target market. We all know that the target is going to be human but, you need to go beyond that; are you targeting children, teenagers, young women, moms, grandparents, parents, dads, men, working men, etc. Once you have figured out who your target is then you can go to the next step of figuring out where your target group is most likely to see your product. This will enable you to make the best decision on where to market your product; television, radio, print, ads etc. Once you have all these decisions made you need to figure out what your budget is and then you will be able to see where best to spend your marketing budget to reach your target consumers.
To find out more about Anoosh Kashefi, blogging, and his empower network review, mentorship, and an online marketing consultation, feel free to check out his website where he offers modern marketing strategies used by elite marketers and corporations worldwide.
