Know-How Exchange : Advertising/PR

Thaks Adam, that was my thinking but you have confirmed it. I appreciate the response.

You were to fast with accepting my response.
You should listen to what other people might say to your question and then decide, ok?
I have no monopoly on wisdom, believe me.

Adam

First time user. I never take anything as gospel, but wanted to ackowledge the response.

No, there isn't any formula.
Nestle claims to spend about 14% of the total revenues on marketing. I worked with clients who spent about 5%, I also worked with clients who believed that 2% is enough...
Judging by how successful Nestle is, I would say that there is something to learn from them, after all, they know what they are doing.
Generally speaking, I would think that spending a lot of money is a must when you are in the fast moving consumer goods business.
There are many moving components, pricing issues, competition activity etc.
So depending where you are, and which industry you belong to, you can learn from your competitors what is the "normal" amount to spend.

Thanks mbarron.

Sorry , but I do not know your name.

Adam

Thanks Ilan.

It sounds like I should be marketing Chocolate with the budgets that Nestle has!

Regards,

Mark

Mmm, chocolate...

No formula. Everyone starts of thinking there is, and is always intrigued to find the formula is found where the marketing department faces off against finance and they eventually come to a begrudging agreement.

In general, Marketing people want to spend as much as possible. Ever hear a marketer complain they have too much budget left over at the end of the financial period? Nope... Strategists, on the other hand look to fin the MINIMUM that must be spent to achieve the desired effect.

CEOs famously lament they think their marketing people waste 50% of their advertising budget - but they don't know which 50%.

It's a mystery!

For me the answer is to develop a marketing strategy that sounds like it would do the job, then budget for it. If the budget doesn't stack up, cut, restrategize, rinse and repeat until it does.

The approximate step-by-step process is strategy, costing, budget, execute and spend, measure results and ROI, feedback results into strategy. It's a constant learning process and every business, every time period, is different.

ChrisB

Thanks for the comments and time.

Mark