How much a company invests in marketing and public relations can have a dramatic impact on a company’s growth. So what’s the magic number?
According to the global market intelligence firm IDC (International Data Corporation), the average marketing budget is 9.4% of total revenue for companies with annual earnings of less than $250 million. However, IDC notes that this figure includes the expenditure of very large companies in mature markets, which typically spend a significantly lower percentage of revenue. Therefore, the majority of the pack invests far more than 9.4%. In fact, IDC says the number can go up to as much as 50% for companies attempting to grow market share.
When considering how much to invest marketing and public relations, the key is to remember that is an investment in your company’s growth. Consider where world famous brands like Coca Cola and Apple would be without marketing. Then think about the last time you went to purchase a soft drink and asked for Chek Cola versus a recognized brand. Marketing, PR and branding feed into our psyche and impact most every purchase decision we make. If you think it’s not impacting those in the mortgage industry, you will be wise to think twice.
Need help determining how to best allocate and utilize your marketing and PR budget? Contact us for a complimentary consultation at info@strategicvantage.com.
By Rosalie Berg, President, Strategic Vantage