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Marketing Budget Template
Tackling the Marketing Budgeting Process
Are you spending enough on marketing? According to a recent survey of ours, if you're like many of your colleagues, the answer is no. Our
recent survey showed that 42% of marketing budgets fall below the 5% of revenue mark. In fact, only 38% of you spend an adequate amount
on marketing by Go-To-Market Strategies standards and only 36% of you felt you spent enough to be successful by your own standards.
That's not a pretty picture of the marketing budget situation you must be facing. As we enter the year, we are faced with establishing and
validating the money we plan to spend, and are often perplexed with how to approach it. Some of you are simply handed a budget from
management. Others are given a percentage of past or projected revenue, while others still are told to submit a plan for budget approval.
In reality, there is only one place to start—the Strategic Marketing Plan. Once you understand the goals and strategy around your marketing
efforts, you will be much better prepared to establish a budget. With that said, there are three approaches to the budgetary process that you
should consider...and they are not mutually exclusive.
Top Down
With the top down approach, you start with a budgetary number that "comes down" from finance or upper management. You have $X to spend
and you take this number and allocate the funds into months. To do so, take a look at your company's seasonality (are there months that require
higher marketing activity than others), sales quota distribution, and sales cycles.
We recommend you ask your management team for a commitment to a percentage of revenue for your "top down" budgetary number. This
keeps marketing more aligned with the revenue goals and prevents the dollar figure from being some arbitrary number that can be increased or
decreased at whim. Instead, it should only be adjusted when revenue expectations are also increased or decreased. As a guideline, our survey
shows that most companies spend between 3-5% of revenue on marketing, with marketing driven companies spending between
10-15%. If you are launching a new product, or are expecting to launch into a new market or territory, expect to spend
approximately 20% of revenue to fund that program.
The general guideline for using the percentage of revenue approach is 8-10% of revenue should be spent on marketing, with approximately 5%
of that going to labor (either for a department, or outsourcing to a marketing firm). What percentage you use is determined by a number of
factors, how mature is your market (how much education do you have to do), how well known is your company in your industry (are you a new
or established business, how much brand awareness do you have to do), and how fast do you intend to grow, just to name a few. Once you've
received a commitment from management on your percentage of revenue each month, calculate the "allowed" monthly budget for marketing.
Bottom Up
Once you've established your top down numbers, set it aside and review the budget with a bottom up approach. That is, look at the specific
activities you are planning to launch, the frequency you're planning to launch them, and then calculate the costs for each item in the month it is
scheduled. You will want to segment this into several key categories for ease of reporting and tracking (i.e. Staffing, Brand Materials, Collateral,
Web Site, Promotions, and PR) and add each activity under the segment it applies to. Once you've calculated the "true" costs of your proposed
programs, compare with the top down numbers. Then let the negotiations begin.
Projected ROI
In every budget negotiation, talks always come back to one thing—What's the Return? Though it is often very difficult to calculate in terms of
conversion to sales, there are techniques you can use to validate your marketing plan before you implement it and these same techniques can
also be used to measure it during and after execution. To calculate a marketing plan's expected ROI, you need to compile the same key
assumptions in a Return on Investment Calculator (try our ROI Calculator, which you can download at
www.gotomarketstrategies.com/roicalculator.htm). From there you should be able to ESTIMATE how many leads your program should generate
(given messaging, right mix of vehicles, appropriate target market, solid product offering, etc.), how many customers you should convert, and
therefore your projected return on investment.
The budgetary process is something we "creative" marketing folks sometimes dread, and as a result do not spend enough time thinking about it.
But with a solid strategic marketing plan, the above budgetary approaches, and the following Marketing Budget Template, you will have the
resources and direction your company needs to build your marketing budget.

Now, on to your Budget Template!
Instructions: First go to the BUDGETING MODEL worksheet and determine your Top Down budget number based on your revenue goal. Then, go to the
MARKETING BUDGET SPREADSHEET and detail (by month) each activity you have planned based on the actuals from your Marketing Roadmap or
Promotional Plans.
You will want to combine this template with the Return on Investment Calculator, which can be found in The Marketing Toolkit or available online at:
http://www.gotomarketstrategies.com.
320306849.xls
Template provided by: | www.gotomarketstrategies.com | inforequest@gtms-inc.com
(c) 2008 Go-To-Market Strategies. All rights reserved.

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000.00 Template provided by: | www.00 $ 8.Marketing Budget: % of REVENUE Year: 200x Instructions: Type your forecasted revenue for each month into the Revenue cell.com | inforequest@gtms-inc.000.com (c) 2007 Go-To-Market Strategies.000 $90.00 $ % of REVENUE: $1. if you're looking for moderate growth in the coming year and are an established business you can adjust down to 8%.000.00 $ 2. you will want to adjust up to 15%. depending on the agressiveness of your business goals.000.000 $50. All rights reserved.xls July Aug Sept Oct Nov Dec $70.000 $40.000 7.000.00 $ 3. You can adjust the percentage up or down.00 $ 20.00 ANNUAL REVENUE: ANNUAL BUDGET: $ Revenue Total Budget Proposed $ 320306849. For example.000.000 105.000 $300.000.000 1.000 $100. Your proposed budget will be calculated based on the percentage entered in the Marketing Budget % cell.000.000 $20.000 $60.00 $ 9. Revenue Total Budget Proposed $ Jan Feb Mar April May June $10.000. however if you are expecting agressive growth and/or are a brand new business.00 $ 5.000.050. 06/06/2016 .00 $ 10.000.00 $ 6.000 $80.000.00 10% 30.000 $30.gotomarketstrategies.000 $200.000.00 $ 4.

com | inforequest@gtms-inc.gotomarketstrategies.xls $0 $0 $0 $0 $0 $0 $0 $0 $0 Template provided by: | www.Marketing Budget Year: 200x Instructions: Detail each activity by month. use the Budget Model sheet in this workbook to calculate and then reference it to this sheet to see how far off you are.com (c) 2007 Go-To-Market Strategies. For an estimate as to how much you "should" expect to spend. $0 $0 $0 $0 CONFIDENTIAL .E. Customize the line item to align with your marketing plan! Review the Budgeting article prior for help with the budgeting process. CONSULTING) Salaries $0 Benefits $0 STAFF SUBTOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL BRAND Letterhead $0 Envelopes $0 Business Cards $0 Presentation Folders $0 Other (click insert/row from menu) $0 BRAND SUBTOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL MARKETING MATERIALS (COLLATERAL) Brochures/Datasheets $0 White Papers $0 Other (click insert/row from menu) $0 MARKETING MATERIALS SUBTOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL WEBSITE Hosting $0 Design/Development $0 Other (click insert/row from menu) $0 WEBSITE SUBTOTAL 320306849. JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL STAFF OR SERVICES (I. All rights reserved.

xls Template provided by: | www.com (c) 2007 Go-To-Market Strategies.JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL PUBLIC RELATIONS Press Releases $0 Media Relations $0 Wire Fees $0 Press Kits $0 Other (click insert/row from menu) $0 PUBLIC RELATIONS SUBTOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL PROMOTIONS Advertising $0 Events $0 Promo Items $0 Direct Mail (print and email) $0 Telemarketing $0 Prospect Lists $0 Other (click insert/row from menu) PROMOTIONS SUBTOTAL TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Annual Total 320306849.gotomarketstrategies. $0 CONFIDENTIAL .com | inforequest@gtms-inc. All rights reserved.

000 1% 50 60.000.000.600.000 1112% 250.cost per click target TC cr tr ROI GRAND PRIZE TC TARGET TR ROI 1.000 55.000 300 363.600.000 5000 5.000 45% .600.

000 $50 $10.500 $8.500 $7.000 $50 $1.000 $50 $1.400 $10.500 $8.000 $96.Marketing Budget Year: 2009 Instructions: Detail each activity by month.500 $7.xls Template provided by: | www.000 $1.000 $1. JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL Salaries $7.600 $8.500 $7.400 $1.500 $8.E.000 $50 $1.400 $13. 06/06/2016 . CONSULTING) STAFF SUBTOTAL AUG SEPT OCT NOV DEC $109.500 $8.400 $1.500 $8.600 TOTAL BRAND Letterhead $475 $475 Envelopes $150 $150 Business Cards $400 $400 Presentation Folders $600 $600 BRAND SUBTOTAL $1.500 $9.500 White Papers Collateral Design MARKETING MATERIALS SUBTOTAL $837 $1.137 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $720 WEBSITE Hosting 320306849.000 $9.500 $300 $2.000 $1.com (c) 2007 Go-To-Market Strategies.500 $7.625 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1.000 $1.500 $8.000 Benefits $1.500 $4.400 $1.400 $10.500 $7.000 $1.com | inforequest@gtms-inc.400 $10.000 $1.500 $7.000 $50 $6. use the Budget Model sheet in this workbook to calculate and then reference it to this sheet to see how far off you are.000 $50 $1.000 $887 $1.000 $1.500 $10.000 $50 $1.500 $50 $2. For an estimate as to how much you "should" expect to spend.000 $9.gotomarketstrategies.625 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL MARKETING MATERIALS (COLLATERAL) Brochures/Datasheets Printing $837 Content Development (Whitepapers/Brochur $1. All rights reserved.000 $50 $1.000 $1.000 $9.500 $8.400 JAN FEB MAR APRIL MAY JUNE JULY STAFF OR SERVICES (I.000 $50 $1.500 $7.000 $50 $1. Customize the line item to align with your marketing plan! Review the Budgeting article prior for help with the budgeting process.

000 $840 $2.000 $1.295 $2.885 $5.737 $1.485 $590 $1.000 $175 $675 $1.500 PUBLIC RELATIONS Press Releases $250 Media Relations $500 Wire Fees $250 $500 $175 Press Kits $250 $500 $175 $500 $175 $675 PUBLIC RELATIONS SUBTOTAL $250 $250 $500 $175 $500 $175 $3.000 $5.400 $4. $174.739 $4.000 $144 $420 $2.094 $2.050 $1.004 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL $250 $1.737 $1.181 $3.860 $9.476 $4.826 Template provided by: | www.000 $2.900 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL $3.107 06/06/2016 .737 $4.100 $21.000 $500 $0 $4.000 $2.880 Annual Total 320306849. All rights reserved.Design/Development $5.xls $1.444 $38.690 Promo Items $0 Direct Mail (print and email) $144 $439 $258 Webinar $144 $439 $258 $420 Telemarketing $2.com (c) 2007 Go-To-Market Strategies.060 $68 $367 $68 $68 $367 $68 $68 $367 $68 $68 $367 $7.841 JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL ### ### ### ### ### ### ### ### ### ### TOTAL $20.350 $1.175 $425 $500 $425 $500 $425 $1.370 $4.196 $8 $8 $8 $8 $8 $8 $8 $8 $8 $8 $8 $88 $5.457 $2.com | inforequest@gtms-inc.000 $10.gotomarketstrategies.175 $425 $500 $425 $500 $425 $6.000 $1.737 $3.737 PROMOTIONS Advertising $500 Events $1.000 Prospect Lists $0 Google Adwords PROMOTIONS SUBTOTAL $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3.000 Enewsletter Distribution $299 Search Engine Submission WEBSITE SUBTOTAL $299 $299 $299 $1.650 $1.650 $1.