When preparing annual budget, you should not walk in stringencies. The annual budget should be respected, but that does not mean it will leave completely aside the new opportunities generated by the market. If we let it slip away that opportunity because our budget is on the brink will fall into a tragic mistake. And this would underscore if we intend to opt for this opportunity next year when we produce a new budget.
So what guidelines should be followed in formulating our annual budget?
The following steps will serve only in the alleged case of several product lines:
We should develop our marketing plan away full of optimism; we must be guided solely by the dictates of the market. It should answer questions such as: What is the degree of perception of my products? Is it a new market? How much competition is well established?
It will be a ranking of products on the basis of potential angle of these in the face of the future. The important thing here is not know the impact of a product at the present time, but how will adopt the product, the public in the future. This requires a special observation of the entrepreneur. To help must resolve the following questions: Does this product can withstand a higher price? Is this innovative idea that allows us to be leaders? Is it a mature product with established competition?
Next, you must focus on the allocation of advertising strategies. Understand, first of all, that advertising seeks to sell, not entertain or inform. Change the view of a person through advertising is almost impossible. Have an innovative idea, you should focus your advertising on the new features offered by your product. If a product already on the market, you should choose your product compare to the rest, emphasizing the differences between them.
Then you must be very careful in excessive waste of money. The budget is not infinite. You must allocate a larger budget at two or three product lines that have greater potential. We did not try to invest in the products that have high selling at present. Marketing acts according to the future. The other product lines should be content with the budget they have. It may sound insensitive with certain areas of our company, but the cold reality of the budget thus dictates it.
As is seen, the budget is not directly related to the distribution of money, but it should be correlated with the application and opportunity factors. An adequate budget is not a cursory handling of figures, requires careful observation of the market to see where the hidden business opportunity. Sharpen your mind and develop your budget wisely.