MKT 625 - Module 6 Short Paper

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Southern New Hampshire University *

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Marketing

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Feb 20, 2024

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Samantha Burger MKT 625 Joseph Tradii January 26, 2024 Short Paper: Budget Analysis

When it comes to marketing campaigns, it does not matter if you are a multi-million- dollar organization or a small start-up business, the components that go into a successful execution remain the same. You must have a clear budget outlined and a thorough understanding of your objectives and what you hope to accomplish with the budget allotted. Like following a guide, having an estimated idea of what you need to spend in order to accomplish your specific goals makes it easier to manage expenses (Empire Creative, 2023). Budget Cost Starting small in 2018, Beis has rapidly grown into a multi-million-dollar brand surpassing $120 million gross revenue just last year and anticipating to reach $200 million within the next, despite their lack of any brick-and-mortar stores (Directo-Meston, 2023). With this information considered, and how instrumental of a role marketing plays in Beis overall sales and outreach, of the two sample budgets available, the most appropriate to use in this scenario is the one year multi-million-dollar budget for a multi-million-dollar organization. This sample budget breaks down the estimated allotments for aspects such as research, audience audit, competitor analysis, concept creation, planning, vendor selection, and media buying, all together creating an informative outline of expected expenses to arise from the campaign. Within this budget, cost regarding marketing assets, research and audience audit, is detailed appropriately with $10,000 - $20,000 allocated to research and $10,000 - $15,000 allocated to audience audit. While the importance of research prior to launching a marketing campaign is obvious, audience audit holds just as much weight. This is how your brand gains a sense of who their audience is beyond just the demographic data. This form of research dives

deeper into understanding the ins and outs of a consumer base. In other words, not just what they like but why they like it. Understanding this helps you narrow down best how to target and connect with them (The Space, 2023). With that being said, a substantial budget for these two marketing assets is crucial because they serve somewhat as the backbones of the campaign, gathering this information thoroughly and accurately is key for success and every strategy that follows will be built on this information gathered. Campaign Budget When it comes to determining budget for a campaign, it is recommended to only spend between 5% to 10% of revenue. More is ok if you are aiming for rapid growth, but it is not advised to exceed much over 20% (LinkedIn, 2023). While the budget here being analyzed is a sample for a multi-million-dollar corporation and does not truly represent the exact amount Beis could spend, its overall allotment is for a maximum $120,000 campaign. With the research being taken into consideration, this would likely be around 10% of revenue making that company worth around $1.2 million. Beis, being worth around $120 million could be spending a lot more on a campaign, around $12 million. Budget Allocation While this budget might seem like an excessive amount to spend on marketing, it must also be taken into consideration that Beis is primarily an ecommerce business that relies on marketing and social media to makes sales. Therefore, it should be expected for a large portion of it to be dedicated to that as well as general marketing efforts. These would be the priorities of the budget because regardless of how incredible a brand or product may be, if people don’t know about it, relate to it, or feel they have a good reason to buy it, it won’t sell. This is even more true

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