Question

Topic: Strategy

Marketing Budget As A Percentage Of Revenue

Posted by Anonymous on 8/4/2005 at 11:20 AM ET 250 Points
What is the typical range for a software marketing budget as a percentage of company revenue. This is for a company with an established product on the market and sales.
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RESPONSES

  • Posted by adammjw on 8/4/2005 at 11:50 AM Accepted
    bstewart,

    Pls resort to MarketingProfs Premium Library on Sales&Marketing Alignment.The figure given is 4.5% for hardware/software companies.


    Adam
  • Posted by SRyan ;] on 8/7/2005 at 8:18 AM Accepted
    Take a look at this recent thread on the forum for some ideas and some cross-links to other similar questions.

    To get access to the report that Adam mentioned, you'll have to become an annual Premium member of MarketingProfs. Most people say they get huge value from the Premium content on this site... but see my profile to understand why I'm probably a bit biased. ;]
  • Posted by Mushfique Manzoor on 8/11/2005 at 1:55 PM Accepted
    hi stewart

    ideally for a product that is established in the market and has good sales, the Advertising & Promotion (aka A&P) budget should be not more than 5% to 6% of its revenue. depending on the nature of the product/industry as well as competition this might go maximum upto 8% to 10% of revenue (although a rare condition).

    hope that helps.

    cheers!!
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