Marketing Budget

An age old question for managers of a service firm is how much to spend on marketing. We all want great glossy brochures, but do they really drive the business. The suggested marketing budget is 1.75% of gross revenue. A marketing plan should be created at the beginning of the year to account for approximatly 75% of the budget. The otehr 25% of the allocated budget should be held in reserve for unknow items that always come up. Please note that this is just marketing budget and does not account for total cost of sale (i.e. sales people or business development time)