Priddey Marketing

money back up, save money, save

Getting a Return on your Marketing Investment?

We are in uncertain times at the moment, and therefore some organisations within the science, technology and engineering sector are cut budgets and became more wary about investment.

Marketing is often a budget which is one of the first to be cut as “anyone can post on social media, right?”

But is this false budgeting?

Marketing is instrumental in making your organisation visible to attract clients, investment and partners. Marketing is needed to launch a product or service. Therefore marketing has a direct impact on the organisation’s returns.

But how do you know how much to invest in marketing?

Investment vs. ROI

As with most things to do with business, it’s all in the planning and knowing your figures.

  • What are you trying to achieve? More sales? Enquiries? Newsletter signups?
  • What is the immediate value of this goal? How many sales at what value?
  • What is the long-term value of this goal? Why are newsletter signups valuable?
  • What is the timescale for these goals? Six months, six weeks, a year?
  • What are the steps your client or investor will take to engage with you? Do you have the correct messages, channels and assets in place to support this journey? We touched on this previously in budgeting, timelines and KPIs.

The more information you have about what you want to achieve and the monetary value, will make working out the most suitable investment easier. The clearer you are, the smarter and more cost-effective your marketing.

Because marketing and calculating the ROI is not an exact science it is difficult to put a hard and fast rule on what percentage of your sales budget should be spent on marketing.

According to a CMO survey[1] carried out in February 2020, spending between 4% and 10% of the sales budget on marketing was common, but an additional survey carried out in June 2020 to measure the effect COVID19 was having showed that marketing budgets had fallen. According to the same survey, it showed that marketing in Tech/Software/Biotech was 9.7% of the entire business budget.

How close is your marketing budget to these averages?

Smarter Investment

If you feel that marketing hasn’t worked for you in the past, perhaps it is time to look closely at what methods you have tried, your goals, your investment and your ROI. Are you investing in the right areas? What is needed to launch your product or service and keep your business in the public eye?

If you would like to speak to a marketing consultant about your marketing strategy for the next financial year contact to discuss what metrics will work for you.