Unlike very large organizations that have a highly developed P&L budgeting process, most small and mid-size companies do not set an annual budget based on what it will take to market their business. Often the budget is based on what the management team want to spend and does not reflect what it will take to connect with customers in a way that will drive results.
I recently read What is the Average Marketing & Advertising Budget for a Company, that lays out the facts. Bottom line, if you have <$5 million in annual revenue you should budget 7% to 8% of gross revenue to marketing. Those dollars should be earmarked and used only for marketing and advertising. Once you have set your