The Chartered Institute of Marketing (CIM) recommends that companies spend between 5% to 10% of their gross revenues on marketing. However, many manufacturing firms spend far less than this.
In fact, many don't set money aside for marketing at all. If you want your company to survive, and thrive, however, you'll need to create a dedicated marketing budget in the same way that you create budgets for your manufacturing operational processes or staffing needs. Let's examine why that's the case.
1) You Don’t Get Dream Customers For Free
Many of the companies that come to me for help are loath to spend money on marketing because their budgets are so tight. They see marketing as a voluntary activity which can be postponed until they have more cash coming in. However, while spending out on marketing may not be a legal obligation, you should view it as a mandatory requirement if you want your company to grow. New customers won't simply stumble upon your company online by accident. You'll need to promote your firm and coax them through your doors – and the way to do that is by spending money on marketing.
2) Your Competitors Will Be Budgeting For Success
You may not have a dedicated marketing budget in place, but your rivals certainly will. That means that they'll have the competitive edge when it comes to online visibility for the search terms your customers are plugging into Google. While you're taking a scattergun approach to finding new customers, they'll be getting their message out to your mutual target customers in a clear and consistent way. So, who are those prospects likely to turn to? A firm who is reaching out to them and telling them that they can meet their needs, or a company they've never heard of or can’t find? The answer should be obvious.
3) Your Marketing Budget Is An Investment, Not A Cost
Many manufacturing company owners tell me that they'd love to spend more on marketing, but they need to prioritise other expenditures. The problem is that they're viewing marketing expenditure as nothing more than extra costs. Instead, they should be looking at it as an investment in their company's long-term success, with an achievable ROI that makes every penny worth it. Your firm simply won't thrive without a constant stream of sales. Therefore, you need to keep attracting new enquiries. Spending a percentage of your gross revenue on marketing will allow your income to snowball, taking your business to the next level.
Claim A Free Copy Of My Marketing eBook Guide
While you need to spend money on marketing, you need to spend it wisely in order to make a profit. That's why it's crucial to work out how much you can afford to spend on acquiring each customer and budget accordingly. My eBook, "The 7 Classic Marketing Mistakes Made by Manufacturers & How To Avoid Them!", is full of tips to help manufacturers attract more customers in a cost-effective way. Follow the link above to claim your free copy today.
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