How to define, make, and manage a budget

Understand the steps to consider when creating your marketing budget to achieve the best results.

Nothing is more complicated than defining a budget or, with a pre-defined value, being able to develop basic activities, innovate, and achieve business objectives.

One of the most authentic truths and realities in a marketer's life is that needs are infinite and resources are scarce within organizations. This truth is a thorn in the side of many marketers, as the desire and need often cannot be met due to the inability to invest more. Furthermore, we are in an era where there are countless channels and means to communicate and promote a brand.

Therefore, we want to help you prepare in the best way possible, and we provide some steps and tips on how to prepare your budget and your marketing and communication plan.

How to Create Your Budget:

1. Start by listing everything you have done so far. Leave nothing out; be meticulous in listing the actions and activities that marketing undertakes.
2. Categorize each action within a marketing specialty area:
   1. Marketing
   2. Public Relations
   3. Digital Marketing
   4. Social Media
   5. Events
   6. Advertising
3. Review the investment made so far in each of the actions and in each category
4. Evaluate the return on investment made in each category and action.
5. Assess the direct impact of each action on the following marketing strategy variables:
   1. On sales
   2. On brand promotion
   3. On attracting goodwill for the brand
6. Compare with the actions and strategies of the competition.
7. Validate market data and trends for the coming months.
8. Define which categories will be the most strategic for the new Marketing Plan. Investment priorities are mandatory!
9. Draft the document with all actions by category. Relate them using the WEIGHT model concept.
10. Establish clear, specific, and measurable objectives and timelines for evaluation.

This is a time-consuming process, but it will lead you to achieve a clear vision of what you have done and the real impact on the company and the market.

How to Manage Your Budget:

1. Create and maintain a budget document updated in real-time. This can be a mere Excel sheet, or you can request access to a marketing cost document from your finance team.
2. Carefully control and verify the planned values and actual expenses. It is important to understand if there are overruns or not. This can compromise your campaign!
3. Always have the objectives and priority investment very clear.
4. If there is budget slack, try to use it for:
   1. Reinforcing the current investment
   2. Innovation and experimentation with new campaigns
5. Be creative and never miss an opportunity to make your brand better!

Always remember that no matter how creative your marketing plan may be, it will only be effective when it is fully aligned with the organization's business and sales objectives.