Question

Topic: Advertising/PR

Marketing Vs. Operational Budgets

Posted by Anonymous on 8/20/2012 at 10:02 AM ET 25 Points
One of my clients is looking to justify redirecting some of their budget from marketing to operations.

Does anyone have a have a resource and/or a list (for example purposes) of what a marketing budget (advertising, public relations) might account for vs. operational expenses (promotional items, signage, company stationary), etc.?

Any ideas on a source for such info?

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RESPONSES

  • Posted by Gary Bloomer on 8/20/2012 at 10:49 AM Accepted
    Your client is robbing Peter to pay Paul.

    I don't have a resource, just experience. It is a mistake to cut marketing and to direct said funding to operations and to expect revenue to remain constant, or for it to climb.

    However, it's your client's business, not yours. If the client wants to spend their marketing budget to make sure the CEO has stationery, so be it.

    It simply needs to be clearly communicated to the client that to do so limits the exposure of the message that brings in the clients that pay the bills that create the budgets to print the stationery!
  • Posted by Peter (henna gaijin) on 8/20/2012 at 1:55 PM Accepted
    I am with Phil - the stuff your client calls operation expenses are in my mind mostly marketing expenses. Agree on stationary as one that may not be marketing.

    That said, in finance terms, marketing is one of the many operational expenses. Outside of OpEx, the other major expense is capital expense (land, major equipment).
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