BUDGET SETTING METHODOLOGIES: Build a Business Case for Your Marketing Communications Budget

November 2008

At this time of year, many marketers are involved in budget planning exercises for next fiscal year. While most marketers have a wishlist of projects they would like to accomplish, it is important to frame these ideas within a model that can be understood by a company’s financial team. Only by taking a systematic approach, supported by evidence, are marketers likely obtain appropriate budgets to achieve their goals.

There are dozens of ways to calculate necessary marketing budgets. When estimating, marketers should aim to arrive at a budget with a reasonable level of confidence, as efficiently as possible. When we estimate for our clients, we triangulate two to three different methods. Which ones we recommend for a particular client depends on each company’s specific circumstances including industry segment, market maturity, marketing channel complexity, ease of obtaining metrics, etc.

In “Budget Setting Methodologies: Build a Business Case for Your Marketing Communications Budget”, we review a number of the most common budget setting approaches, including Target Sizing, Sales Goal Approach, Share of Voice, Advertising/Sales Ratio, Share of Market and Task-Based.

	To download this white paper, please input the information on the left' and click the “Download Now” button.

Sign up for our newsletter to stay informed about Luminosity news, research and white papers. To speak with one of our experts or for more information, please call us at 646.213.4860 or email us at info@luminositymarketing.com.

return to white papers page