The time a potential client reaches to us for a marketing & advertising campaign in Iran, this is our responsibility to ask this question: “What is your marketing budget?” Unless you’re in marketing, a majority of people don’t have the slightest notion about how to do advertising budget estimation and dedication in Iran to run a successful marketing campaign.
We, at Zigma8 | 360° Creative Communications, don’t try to sell you what you can’t afford, but we do our best to figure out what is the optimum situation for your company. Every company is different from others and has its own specific needs. Our experts have created a simple method to get your advertising and marketing budget estimation and dedication in Iran on the right track. These tips include the estimation and dedication of your marketing budget regardless of your company size and revenue.
Establishing your company’s total revenue is the very primary step to know your advertising & marketing budget estimation and dedication in Iran. You need to find out about your Gross Revenue and your Estimated Revenue. We can define Gross Revenue as the Revenue gained before any deductions or fixed and current costs, as for the building rent, cost of goods sold, taxes, etc. On the other hand, Estimated Revenue is called the amount of money expected for a given accounting period. Revenue calculation is very crucial for many financial activities such as estimating taxes due, budgeting, and issuing statements to others.
The Size of Your Company
Is your company new and young or it’s an older and established one? Generally, newly established companies, not only in Iran but also in the world, are actually the ones that have to focus on their advertising and marketing activities more than others. They try to build awareness for their brand and their name and wish to gain and add loyal customers just like successful competitors. Advertising and marketing budget estimation and dedication in Iran for established and old companies is always an on-going process and they should always be marketing. At the same time, they don’t need to push as hard; the market customers know their name and will purchase their products or services without even giving it a second thought.
Marketing & Advertising Budgets for New and Small Companies
It is proven by both science and experience that for newly established and small companies, you have to allocate at least 12%-20% of your gross revenue to the marketing and advertising budget in Iran. That is a big number, especially for small and young companies! To look at this idea in a rational way, just imagine when you provide an amazing new product or a service, something that is a major game-changer amongst other competitors, but no one buys it. You will ask yourself what would the reason be? Well, definitely that’s because customers have no idea about your product or service, or they even don’t know if it exists.
Marketing should be a major focus of these young companies; not only does it bring in new customers and leads, but establishes your brand in the industry. Once your brand is established, you can definitely consider bringing down your marketing budget.
Marketing Budgets for Established Companies
For established companies, at least, 6%-12% of your gross revenue should be allocated to advertising and marketing budget estimation and dedication. But why so little compared to those little companies? As previously mentioned, established brands don’t need to market as heavily. They have their loyal customers that really aren’t going anywhere. While they still need to market, they certainly don’t need to allocate as many resources as a small company.
While there is no magical number for each and every company when it comes to setting a marketing budget, these percentages are a great starting point so your brand can get started on your marketing strategies.
Zigma8 | 360° Creative Communications is there to support you in planning and implementing your brand advertising and marketing, and we are also there to assist you in your company’s marketing and advertising budget estimation and dedication in Iran. Just drop us a line at our contact to let us guide you through this journey.