How To Use the Xight Marketing Budget Tool

Before you begin…

The Xight Marketing Budget Tool is uses benchmark data to provide you with a marketing budget amount. It is only a starting point for defining your marketing budget. Each business and market are different. It is normal to see a wide range between low and high recommended marketing budgets.

When determining your total marketing budget, consider your goals, competition, risk tolerance, and profit margins.



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Legend

The Tool includes a legend to help guide your data entry and explain results:


Step 1. Benchmark Sales & Growth

Enter the following information into the top section of the tool:

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  1. Your Business Focus. Select from the drop-down menu. (See the Business Focus definitions for an explanation of each of the business focus types in the drop-down.)

  2. Your Business Lifecycle Stage. Select from the drop-down menu. (See the Business Lifecycle Stage definitions for an explanation of each of the lifecycle stages.)

  3. Number of Customers. Enter your value.

  4. Annual Revenue or Projected Revenue. Enter your value

  5. Average Sales Growth Rate Percentage. Enter your value

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The Xight Marketing Budget Tool will calculate:

  • Your Average Annual Revenue/Customer

  • Benchmark Sales Growth Rate

  • Sales Growth Rate Difference from Benchmark

  • Benchmark Customer Acquisition Rate


Step 2. Your Current Marketing Budget

  1. Select an answer from the drop down next to the question "Do You Have A Current Marketing Budget?" (Yes, No, or Unsure).

  2. If you do have a current budget enter the annual budget amount into "Enter Your Annual Marketing Budget Amount:"

The Xight Marketing Budget Tool will calculate the following:

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Budget Percentage of Revenue and Monthly Marketing Budget. Based on the sales revenue number you entered in the “Your Business” section, these values are calculated for you.

 
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Benchmark Marketing Budget Based on Business Focus. Your sales revenue number and your selection of business focus (B2B Product, B2B Service, B2C Product, B2C Service) are used for this calculation. If you entered a current market budget, the tool will calculate the positive (highlighted in green) or negative (highlighted in red) difference from the benchmark.



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Benchmark Budget Based on Business Lifecycle Stage. Your sales revenue number and your selection of business lifecycle stage (Seed & Development, Startup, Growth/Establishment, Expansion/Maturity, Maturity/Exit) are used to make these calculations. The Tool will also provide an overall strategy for your marketing programs, based upon your lifecycle selection.





If you entered a current market budget, the tool will calculate the positive (highlighted in green) or negative (highlighted in red) difference from the benchmark.

Benchmark data source: Using the Xight Solutions ASET process, over 20 online budget references were analyzed and benchmark data collected and averaged. Please see the Budget Benchmark Sources list.


Reset the Budget Tool

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Click the “Reset” button at the top right of the spreadsheet to reset the worksheet and start again.


Next Steps – Allocate Your Marketing Budget

Once you have an overall marketing budget number, you need to decide where to spend that money — your marketing budget allocation.

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Disclaimer

The information provided within this Marketing Budget Estimator Tool is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information, products, services, or related graphics contained in this Tool for any purpose. Any use of this information is at your own risk. The methods described within this Tool are the author’s personal thoughts. They are not intended to be a definitive set of instructions for this project. You may discover there are other methods and materials to accomplish the same result. View the sources for benchmark data used on the Budget Benchmark Sources page.