Essential Marketing Plan with Task-Based Budgeting Strategy

Budgeting for marketing is a key consideration throughout the planning process.

Methods vary but a benchmark consideration is to determine an annual allowance as x% of company revenue. (3-7%) reflects most industry standards after considering net profit impact.

R+R recommend applying a task weighted approach to budget allocation with 3 primary ratios:

1. PRODUCTION / DISTRIBUTION

Pre-social media an 80/20 rule applied favouring distribution. Social sharing potentially re-weights the equation IF production quality & relevance significantly enhances earned media. David Ogilvy worked off 90/10 in the advertising golden era. Assuming standard level of content quality & relevance, 30% production to 70% distribution is recommended.

2. PAID / OWNED / EARNED
Balance & synergy is the desired outcome with content presented to the existing audience through owned channels (in-store, website, social), amplified to new audiences via controlled communications messaging in paid channels (traditional & non-traditional) & extended through 3rd party sharing in earned channels (social, word of mouth & PR). 1/3 Paid, 1/3 Owned, 1/3 Earned.

3. BRAND CAMPAIGN / SALES PROMOTION

Latest research suggests 60/40 rule balance of brand building vs sales activation activities maximises effectiveness https://effworks.co.uk/ten-best-charts-binet-field/

Les Binet and Peter Field have been researching marketing effectiveness for over a decade. Their findings have shaped the way we think about marketing accountability.