Ray worked with B-2-B and Consumer clients throughout the world ... including USA, Canada, Mexico, Asia, the South Pacific, Europe, the Middle-East, Central & South America, Africa.

This website is a compilation of Ray's 10 years on the Web.


Power Direct Marketing: The Book

Some Questions to Consider

Here are some things to consider as you plan the budget for your direct marketing program:

  1. What is your definition of a budget? What do you include under the heading of "budget"? Not everyone agrees in this area—you must include everything and every item you feel fits.
  2. What is your budget history for this product or product line? Where have you invested your advertising and marketing dollars in the last year? Past two years?
  3. Can you make your budgets "flexible" to take advantage of an opportunity? When you know the value of a customer, can you set your budget based on how many new customers you can get at an acceptable cost?
  4. Where do you see the major emphasis for your budget for the coming year? Is that different than the recent past?
  5. What is your prime competitor’s share of market? Compared to yours? How much do they invest to maintain their share? Where do they spend it—in what media?
  6. Monthly/quarterly/annually, what is your total advertising and marketing budget for this product line? Will it be available on an accelerated schedule, if necessary, to meet seasonal opportunities? Or a special or unusual situation?

The Business/Professional Advertising Association did a white paper on budgeting. They suggest there are 4 primary areas of difficulty with setting budgets and making them work:

  1. The person charged with the power to approve marketing budgets lacks the understanding of what marketing is and does.
  2. Budgets seem to be the first item to be cut when business conditions change . . . whether or not they are in line and performing according to plan.
  3. There is a lack of willingness or ability to measure budgets against objectives—which is mandatory in direct response in order to set future realistic budgets.
  4. It is difficult to forecast accurately the amount of funding needed to really reach specific objectives.

When a campaign is approved, the budget becomes an integral part of the plan. Just as important as the other elements of the plan. Equal in importance to the objectives, the timetable, the message carried in the copy and art, the media. The budget should be changed ONLY when the plan itself is changed.

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