Whether you run a brick-and-mortar store or an online shop, marketing is essential. After all, current and potential customers need to know about your products and services so they can buy them. Therefore, to create a solid marketing strategy, create a marketing budget allocation to know where your money is going.
1) Analyse Profit Margins
Marketing is an investment. If you want to see a return on your investment, it’s smart to advertise the products or services with the highest profit margin. Say for instance, you own a jewelry store. You could analyse your inventory and select a piece that’s inexpensive to manufacture but still fetches a high price. Then, focus your marketing materials on that piece. Eventually, as sales would increase, your bottom line would also go up. You can even reinvest the profit from that marketing campaign into the next one.
2) Check Your Cash Flow
When running a small business, it’s important to have liquid cash available for immediate expenses. These expenses include inventory or employee wages. It’s always wise to have backup cash available. This is despite the fact that your marketing campaign is probably going to increase your bottom line in the long run. As you plan your marketing budget, try to determine the cost of other expenses. Then use surplus money to fund your marketing campaign.
3) Use Social Media
Social media can be a wonderful marketing tool for businesses. Platforms such as Facebook, Instagram, and Twitter make it easy to promote your company.Moreover, these platforms connect you with your customers without breaking the bank. In fact, if you’re able to create your own content, you can even market it for free. The key is to put out consistent, high-quality marketing materials that provide genuine value to your audience.
Using the same jewelry store example, simply posting a picture of a bracelet on social media is not enough. You could even create a video about how it’s manufactured or write an article about fashion tips. Create shareable content, and you’re naturally going to see sales rise. Additionally, you can pay for sponsored ads that help your content gain exposure to relevant users. Social media ads are relatively inexpensive. And they’re a perfect starting point for when you’re ready to take your online marketing to the next level.
4) Start Small and Scale Up
You don’t need to blow your entire marketing budget at once. A better approach is to test multiple marketing campaigns with a small amount of money. And then ramp up the ones that are successful. For instance, you could create three different sponsored ads on Facebook. Have them target audiences in three different countries. If one country responds more favorably, you can increase spending on ads in that location with confidence. On a local level, you could create three different advertisements. Then do a test run of each one individually. Once you see which ad generates the most profit, you can focus on that one. And then, take influence from it for the next campaign.
To stretch your advertising budget as far as possible, it’s important to learn from your failures and successes. Once you see what works for your company, you can make the most of every single rupee.