Marketing City

Reasons Behind the Rise of Marketing Budget

By SiliconIndia   |   Wednesday, October 31, 2012
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Bangalore: Marketing budget is an overall estimation of firm budget to market the product or services. It takes account of all the marketing costs like salaries, communication, cost of office etc. But firms spend a lot of money on marketing and that’s the reason why it has been also noticed in The CMO survey. Christine Moorman, Director of The CMO Survey found out reasons behind the rise in marketing budget and reports it Forbes.com. According to her research-

1. Marketing is considered to be in the lead in providing social media activities in the companies. The budget is expected to rise from 7.6% to 18.8% over the next 5 years. Social media is the best way to advertise your brand. So, most companies are planning to invest in this as their strategy.

2. The marketers are using new methods for enhancing marketing skills. For this they are investing in programs such as GE’s Experienced Commercial Leadership Program and Becton Dickinson’s Marketing Excellence Initiative which helps non-marketers and fresher’s in getting trained in marketing tools and processes.
 
3. Big data has got huge information about the customers in small and big companies. As McKinsey states “data whisperers” are the ones who can coax meaning and insights from the increasingly sophisticated and massive data sets available today.

4. Growth in a market is unexpected. After the recession marketers are ready for any circumstance and they have come to a conclusion that growth is not stable. They are developing new products and services and seeking new markets for existing products.

5. Marketers nowadays are planning for long-term goals. This means they need to invest for future firms. They are considering this as strategic investment in building assets like brand equity and customer relationships, which results in long term profits.

6. Sales and marketing share the same customer management techniques. Marketing figures out how to use the Big Data to improve the selling process and see how the social sites contribute to sales. A company’s profit depends on how both these departments interact with each other.


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