• Tuesday, March 05, 2024
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BusinessDay

Marketing budgets

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Growing revenues and drawing profits there from is no doubt the raison d’etre of every business. But the organic relationship between a firm’s marketing expenses and its gross revenue is usually glossed over or de-emphasized. When this causal relationship is not appreciated by business people, it is likened to the desire to reap without recourse to the principles of sowing and nurture provision.

Every business should at all times keep its marketing expenses under proper review, first to understand if such expenses are suitable for creating a significant revenue jump for the business or requires upward or downward adjustments  as the case may be.

Marketing budgets created properly should affect the bottom-line of businesses in a remarkable positive way. The common argument over what should be the ideal value of marketing budgets in relationship with the sought revenues may be a distraction as industry conditions differ and also firms’ goals are dissimilar. However, generally monitoring marketing expenses within the context of a framework that such expenses create a basis for revenue increases is fundamental.

The real essence of a marketing budget is not to create a bang or a splash but to grow revenues.

 

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