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Subject:
Marketing Budgets
Category: Business and Money > Advertising and Marketing Asked by: mikeinmarketing-ga List Price: $5.00 |
Posted:
06 Jan 2005 13:57 PST
Expires: 05 Feb 2005 13:57 PST Question ID: 453137 |
I am looking for a benchmark of marketing dollars as a % of sales relative to companies of similar size to mine. We are a business-to-business research company with $20-$30 Million in annual sales. I have seen some "guidance" in articles that b-2-b companies spend roughly 5-10% of sales on their marketing efforts and that b-2-c companies (Walmart was one reference in a Google search) spend .5 to 5% of sales on marketing. An acceptable answer would be one that references publicly released survey data on b-to-b companies at least and preferably by size of company within b-to-b or for the professional services, consulting or research industry. I do not expect that detail to be available so simply on b-to-b companies would be fine. The key attributes are the figure (% of total annual sales spent on marketing efforts), that it is b-to-b at least and that is a source I can reference. Since there are different definitions of "marketing activities", it would be beneficial but not required if that detail is specified. Thanks! |
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There is no answer at this time. |
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Subject:
Re: Marketing Budgets
From: nlnnet-ga on 06 Jan 2005 18:08 PST |
Are you seriously looking for an answer to this for $5.00? |
Subject:
Re: Marketing Budgets
From: mikeinmarketing-ga on 07 Jan 2005 06:24 PST |
This is my first time using Google Answers. Since I already found articles referencing "the number" I am looking for (average of 5-10% of sales dollars at b-to-b companies is spent on marketing) I am only looking for a more solid source for this answer. If it is not available in a quick search by an experienced researcher, it is not worth the time or effort simply for validation. Additionally, I am a big believer in "tipping." |
Subject:
Re: Marketing Budgets
From: blackfriar-ga on 01 Feb 2005 13:29 PST |
I do quarterly surveys of senior executives regarding marketing budgets, attitudes, and spending. It turns out we have asked this question in three of our surveys last year, so we have data from about 300 executives. But before I provide the answer, I want to provide the caveats about how to interpret the answer. This is a broad-based survey, and our only filter on the respondents is whether they are senior executives (VP, C-level, owner, president, etc.). Our claim is that our sample is roughly representative of the US Census of Business, with large businesses typically being *over-represented* by about 10-20% and small businesses being *under-represented* by the same amount. You can look at the US Census data at http://www.census.gov/epcd/susb/2001/us/US--.HTM. In the census, small business is 99% of business, so anything where you get a sizable number of large companies is actually over-representing large business. When we average the sample for B2B companies, we find they spend 8.4% of revenue on marketing. Compare this against the other three types of answers: companies with $100 million in revenue or more averaged 13.8%, companies that have less than $100 million in revenue averaged 8.7%, and all companies surveyed averaged 9%. The bottom line: B2B companies spend slightly less on marketing in general than the average company. Oh, another comparison: B2C companies spend 9% of revenue on average, just a tad more than B2B companies. We do have breakdowns of what they spend those budgets on as well, but that is content that we sell as part of our syndicated research. You may contact me if you want more information on that. We publish a public index of marketing spending as well called the Blackfriars Marketing Index. You may want to google that for a gauge of how marketing spending has changed over the past year or so. I hope this is helpful to you. |
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