Know-How Exchange : Other

Marketing budgets are typically 3%-5% - sometimes higher (8%-11%) for companies where marketing is a big part of the business process.

A consulting group called Blackfriars Communications used to do a study of marketing expenditures, but stopped about a year ago. What they were finding was that marketing department just weren't spending their budgets:
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US Marketing Budgets Tumble In 2007

First Quarter Budgets Languish At 57% Of 2005 Levels

MAYNARD, Mass., April 4, 2007— Blackfriars Communications, Inc. (Blackfriars) announced today that US companies plan to spend only about half what they did on marketing a year earlier. This data collected from Blackfriars’ survey of US senior executives drove the first quarter Blackfriars’ Marketing Index down to 57. Meanwhile, Blackfriars’ fourth quarter 2006 index of actual spending fell to 61, the lowest value since Q1 2004. A graph of the last three years of budgeted and actual Blackfriars Marketing Indexes can be found at: https://www.blackfriarsinc.com/m07q1-index-graph.jpg.
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see the rest of the release at:

https://blackfriarsinc.com/m07q1-release.html

In my last job (food), determination of mkg budget is doing :

* in a first time with a % of 3 - 5 points, but after the problem of increase continues of the prices we choose another method which consist in fixing unit budget marketing per 1 kg (for exp : spend 0,7 $ per kg)
* for product development budget : we fix the budget by report/ratio the forecasts of sale for one year or 2 to 3 years according to the product. The percentage of the budget depends on the structure of cost of the product: there are a product which supports 5% and one product which can support a budget of 15%

Some resources:
https://www.mpdailyfix.com/2007/01/the_7_secrets_of_a_good_market.html
https://www.marketingprofs.com/5/stroll92.asp
https://www.sales-lead-experts.com/tips/articles/marketing-budget.cfm
https://www.score.org/m_pr_11.html
https://www.mortarblog.com/2007/01/add_some_mortar.html#more
https://biz.planmagic.com/2006/04/02/20-ways-to-stretch-your-marketing-budg...