Strategic Marketing Budget Planning: Beyond the Numbers
Marketing Planning Framework
In today's dynamic business landscape, effective marketing budget planning isn't just about allocating dollars—it's about making strategic investments that drive sustainable growth. As marketing leaders plan their annual budgets, it's crucial to take a holistic approach that considers past performance, customer journey, and team development.
Learning from the Past to Shape the Future
One of the most common pitfalls in marketing planning is the "rinse and repeat" approach. While it's tempting to simply duplicate last year's budget allocation, this strategy often leads to stagnation and missed opportunities. Historical performance analysis should serve as a guide, not a template.
Consider these key questions when reviewing past performance:
- Which campaigns delivered the highest marketing and business ROI?
- Where did we see diminishing returns?
- What channels consistently underperformed?
- Which initiatives showed promising early results but needed more time to mature?
By critically analyzing past performance, you can identify patterns, eliminate ineffective spending, and redirect resources to higher-potential opportunities.
Balancing Acquisition and Retention: The Growth Equation
While new customer acquisition often takes center stage in marketing discussions, sustainable growth requires a balanced approach. Your marketing budget should reflect the full customer journey and lifecycle - from awareness to advocacy.
Here's why this balance is crucial:
- Acquisition programs build market share and bring fresh revenue streams
- Retention initiatives typically cost less and yield higher ROI
- Satisfied existing customers become brand advocates, reducing acquisition costs
- Diversified programs provide stability during market fluctuations, especially when budgets are cut
Smart budget allocation means investing in both compelling acquisition campaigns and robust retention programs that nurture customer relationships and maximize lifetime value.
Investing in Your Greatest Asset: Your Team
A often-overlooked aspect of marketing budget planning is employee development. In an era of rapid technological change and evolving consumer behaviors, your team's capabilities can make or break your marketing success. Similarly, it cost more to hire and onboard new employees than to retain and cultivate existing ones.
Consider allocating budget for:
- Professional development and certifications
- Marketing technology training
- Industry conferences and workshops
- Team building and creativity sessions
- Tools and resources that enhance productivity
When you invest in your team's growth, you're not just building skills—you're fostering innovation, improving retention, and creating a culture of continuous improvement.
Building a Future-Proof Marketing Budget
Effective marketing budget planning requires a strategic balance of historical insights, customer-centric thinking, and people development. By taking this comprehensive approach, you can create a budget that not only drives immediate results but also builds long-term marketing capabilities.
Remember these key principles:
- Use historical data as a guide, not a constraint
- Balance acquisition and retention investments
- Include employee development as a core component
- Maintain flexibility for emerging opportunities and changing needs
- Document and measure everything
By embracing this holistic approach to budget planning, you'll be better positioned to navigate market changes, seize new opportunities, and build a sustainable competitive advantage.
The most successful marketing organizations understand that true growth comes from a powerful combination of smart strategy, customer focus, and invested talent. As you plan your next marketing budget, consider how each dollar can contribute to this winning formula.
Mad About Marketing Consulting
Advisor for C-Suites to work with you and your teams to maximize your marketing potential with strategic transformation for better business and marketing outcomes.
Revolutionizing B2C Marketing: 10 Strategic Pillars for Transformative Success
10 Strategic Pillars for Transformative Success
In today's rapidly evolving marketplace, successful B2C marketing isn't just about following trends—it's about creating them. As we navigate 2024, let's explore how to transform your marketing approach through a lens of innovation and deep strategic understanding.
1. The Art & Science of Brand Building
Think beyond conventional branding. Your brand isn't just a logo or color scheme—it's the emotional resonance you create in your customers' minds. It’s what they think about you when someone mentions your name. Success lies in:
- Crafting a brand identity that transcends visual elements
- Building authentic emotional connections through strategic storytelling
- Empowering customers to become part of your brand narrative through user-generated content
- Creating a distinctive brand personality that stands out in a crowded marketplace
2. Social Media: Beyond the Basics
Social platforms aren't just channels—they're ecosystems of engagement. Transform your approach by:
- Developing platform-specific strategies that maximizes unique features
- Creating content that sparks positive conversations, not just likes
- Building genuine communities through thoughtful engagement
- Pioneering innovative social commerce experiences
3. Customer Experience: The New Marketing Frontier
The most powerful marketing tool? An exceptional customer experience. Consider:
- Designing seamless, intuitive purchasing journeys
- Implementing mobile-first strategies that reflect modern consumer behavior
- Creating personalized touchpoints that demonstrate understanding
- Building loyalty through consistent, outstanding service
4. Content Marketing Reimagined
Content isn't king—valuable, transformative content is. Focus on:
- Creating immersive storytelling experiences
- Developing educational content that empowers your audience
- Showcasing authentic behind-the-scenes moments
- Leveraging customer success stories to inspire and engage
5. Email Marketing Evolution
Transform your email strategy from broadcasting to conversation:
- Design personalized journeys that anticipate customer needs
- Implement intelligent automation that retains a human touch
- Create value-driven content that subscribers anticipate
- Build relationships through meaningful lifecycle communications that recognizes their relationship with you
6. Digital Presence & SEO Mastery
Your digital presence should be a testament to innovation:
- Optimize for emerging search behaviors, including voice
- Create seamless mobile experiences that delight users
- Develop content that answers tomorrow's questions
- Build digital environments that convert and retain
7. Data Intelligence & Analytics
Transform data into actionable insights:
- Analyze patterns to predict future behaviors
- Use testing to continuously optimize experiences
- Measure what matters, not just what's easy
- Turn feedback into strategic advantage
8. Customer Retention Strategies
Building loyalty requires both art and science:
- Design reward systems that encourage meaningful engagement
- Create exclusive experiences that strengthen relationships
- Develop community-building initiatives that foster a sense of belonging
- Implement personalization that shows you understand their pain points, goals and aspirations
9. Customer-Centric Promotion
Promotions should create value, not just discounts:
- Design limited-time offers that create excitement
- Build bundling strategies that enhance customer experience and solve their problems
- Create threshold-based incentives that drive larger baskets
- Develop exclusive opportunities that reward loyalty
10. Visual Storytelling Excellence
In a visual world, stand out through:
- Creating immersive visual experiences
- Tapping on emerging technologies like AR/VR
- Designing visual narratives that resonate with target audience
- Building cohesive visual stories across channels
Looking Forward
The future of B2C marketing lies not in following best practices, but in transforming them. Success comes from combining deep strategic understanding with innovative approaches that challenge conventional wisdom.
Mad About Marketing Consulting
Advisor for C-Suites to work with you and your teams to maximize your marketing potential with strategic transformation for better business and marketing outcomes.
So You have Won an Award But….
Everyone loves awards, especially reputable ones from renowned associations.
Marketers love our awards for sure as it’s something that most of us probably toiled hard for and spent long hours putting together the campaign strategy behind it. But if you ask the business and start flashing the trophy in front of them, they might just go “erm good but where’s the sales?”.
In such a scenario, before you start conjuring up images of Tom Cruise in Jerry Maguire saying “show me the money” and depending on what’s the reality of the connect versus disconnect between your campaign outcomes versus business outcomes, try asking yourself the following questions:
What else did I achieve in reality besides marketing outcomes like engagements, interest and conversions based on people who interacted with the campaign?
What did it really look like in terms of sales demand, leads generated for sales and/or sales opportunities, if not actual sales?
If it looks bad, why is there a disconnect between marketing and sales outcomes? Was it a product proposition problem or marketing positioning problem?
The truth is, marketing awards to me, having being a judge for a few different awards now, should be tagged hand in hand to business outcomes.
Marketers shouldn’t be winning awards for their own vanity but rather, the award is the cherry on top of the cake as a reward for a successful campaign that helped to achieve business outcomes. And these business outcomes in turn helped to solve customer problems and address their needs.
Else, you end up with a flashy trophy but still get hammered for not helping business to create sales demand and opportunities. And guess what, your marketing budget still gets cut at the end of the day as business still sees a disconnect between what marketing does and what business wants. Business would rather spend it on product research and development than marketing awards as such award submissions certainly don’t come cheap!
Marketers should therefore take greater pride in being strategic advisors to the business and work with them to strengthen their product and service proposition. Bring in a neutral perspective of the target customer and make sure it is a proposition that is compelling even to you. Else, no marketing campaign can salvage a bad product proposition.
Then, you can go focus on winning awards and actually take pride in it.
About the Author
Mad About Marketing Consulting
Ally and Advisor for CMOs, Heads of Marketing and C-Suites to work with you and your marketing teams to maximize your marketing potential with strategic transformation for better business and marketing outcomes.
The Case of the Misunderstood MarTech and more…
Has marketing technology, content marketing and need for customer driven insights changed all that much in the last 4 years since I first wrote this post in 2020?
In 2020, I observed that companies were moving into Adobe experience management as their go-to content management platform. Come 2024, I am still experiencing some late bloomer companies especially in the content marketing game, now only moving into Adobe experience management or AEM for their content management platform in a bid to get ahead of the game in personalization of the customer experience and engagement.
They will soon be in for a surprise as AEM alone will not differentiate them from their competitors who are doing the exact same thing or have done the exact same thing as it’s after all a technology and a platform. It is merely an enabler but not the solution itself.
It doesn’t negate the need and the fact that it still boils down to having insightful and forward looking content that is useful to their customers. It certainly doesn’t negate the need for them to first have a close connection with their new and existing customers in order to know what kind of content matters to them above all the noise in the market. It certainly doesn’t remove the fact that you need a robust content pipeline to feed the hungry beast of a machine to fully maximize its capabilities especially in organic SEO and to supplement your SEM strategy.
That unfortunately is still a missing piece in lots of companies. Why is it so hard to get that thought provoking viewpoint? Why do so many so-called subject matter experts still behave and think they know it all when the truth is, they are merely regurgitating facts and what others are already saying or just passing the content strategy buck to their agencies? Why are companies who claimed to know their customers, not asking them the right questions in order to help them get the right answers?
Another common mistake is when companies don’t really know the full potential of a particular technology, including MarTech or marketing technology that they have and what they are investing in next.
What then happens is they start shopping for the next latest technology without first reviewing and fully understanding what they already have, how it’s being used, who has been using it and how it else it should actually be used. Often times, you’ll find the technology is perfectly fit for purpose but being used either by the wrong people or the wrong way. In addition, the existing organizational structure and culture might also not provide an ideal process of supporting its use.
But instead of changing that first, they start looking at the next big thing, adding to the mess of integration, implementation, adoption and usage problems that their employees and sometimes customers need to deal with. This leads to stack bloat.
4 years on and stack bloat is still a problem; in fact it has worsen and will continue to as even more MarTech tools get added to the market.
Therefore, instead of blindly investing in all sorts of MarTech tools and platforms, companies should also make sure they have the right objectives, people, processes and plans in place to fully maximize the capabilities of the MarTech. Else, they will end up with yet another white elephant and a misconception that it wasn’t a good enough technology. A case of the blind leading the blind is anything but fine.
Same goes for having the right expertise in who they hire to be thought leaders, spokespeople and making an effort to invest in getting consistent feedback and sentiments from both customers and prospects alike. This is to avoid an echo chamber situation, which is common in hierarchical organizations.
Ultimately, companies who wish to embark on their MarTech journey especially to better support their content marketing efforts need to look at it holistically and not cut corners on doing the needful. Start with your customers, then be clear with your objectives and then plan with a view to buffer for the what, who, where and how in terms of tools, processes and people in your organization.
About the Author
Mad About Marketing Consulting
Ally for CMOs, Heads of Marketing and C-Suites to work with you and your marketing teams to maximize your marketing potential with strategic transformation for better business and marketing outcomes.
Identifying an Addressable Need
I recently came across an analysis by someone showcasing the success of the oat milk brand called Oatly and how they created a need that led to their success.
I have a slightly different take on Oatly’s success in that they didn’t create a need but rather, they identified an addressable need in the consumer market, developed their product to suit the addressable market and designed their packaging and campaign that speaks to the addressable market.
Why is it addressable and why is it not a need creation in their case?
First of all, looking at the fundamental principles of the hierarchy of needs, oat milk in itself is not new. Oatly was not the one who first came out with Oat milk as an alternative to other plant milk varieties that are not from nuts, legumes or fruits. People don’t need Oatly as yet another oat milk alternative. Even for the use in beverages, especially coffee drinks for example, Oatly is not the first entrant in this market.
If you look at the consumer and fast moving consumer good space. there aren’t that many products that are really needs based in this modern day and age. Ask yourself in all seriously as a consumer, do you really need to have say a burger or a pizza or that soft drink? For such cases, what brands and companies are creating is a want and not so much a need, which makes it a lot harder of course.
How we can take a step further however to see if these wants actually can be addressed at a deeper layer, going into the consumer psyche and how we think, behave and act, perhaps there is an addressable need tagged to that specific want. For example, consumer A, let’s call him Billy, wants to eat pizza because it makes him feel good and why does it make him feel good? It reminded him of his grandma who used to make really nice pizzas for him when she’s still around. It makes him feel safe, warm and loved whenever he thinks about pizza now. The feeling of loved, security and safety is a need and not a want as we all know.
This is where the fundamental need that can be addressed by a company who wants to give their consumers the same warm, fuzzy, safe and feelings of love with their pizzas is more likely to win over consumers and build a sustainable brand versus a company that just serves pizzas to make money from pizza lovers.
In Oatly’s case, they identified an addressable want by consumers who are avid coffee drinkers who might fall into a few categories:
1) those who are lactose intolerant or vegan or just prefer not to take dairy with their coffee but yet prefer not to have black coffee
2) those who in 1) but are allergic to nuts or don’t like the taste and thus have been relying on other plant milks like soy or coconut
3) those falling into 1) and 2) but who don’t quite like the tastes of other current plant milk types available
Looking at the wants and preferences of the consumers, we can also look at what are the underlying needs of the consumers who don’t take dairy and prefer plant milk in general that are being addressed. For example, it might be a feeling of being healthier, which is more basic survival or a feeling that they are doing their part in supporting the rights of animals, which is more altruistic or self actualization.
I find that doing an extensive mapping by going back to basics of what your target consumers want and need helps to better identify what is that addressable need that you as a brand or company can cater for ultimately to form your proposition.
Going back to Oatly’s case, after they have identified the preliminary wants and needs, they would be looking at pain points their consumers are facing based on how, where and when they are consuming plant milk. In this case, oat milk is not new to the market, including in the coffee shops but it is just beginning to make some headwinds. Almond was the first to lay claim and make their presence felt after soy was dominating for a while as the alternative milk for barista brewed coffees. Oatly would have studied this for a while and gotten some feedback from prospective customers who are avid drinkers of coffee paired with plant milk, once they decided this would be a good place to target in terms of their distribution network.
They would need to consider not just the taste of their product when brewed with coffee but the price point as well both on the consumer side and the business side, meaning the cafe owners who will be buying the stocks from them before they developed their barista edition oat milk. If there are already a few other plant milk or early entrant oat milk varieties being supplied, what would be that key differentiator so Oatly can win? They would need to think about product variations to cater for standalone oat milk drinkers versus coffee drinkers who choose plant milk over dairy.
At this point, it wouldn’t just be the packaging. It would be taste, quality, price and ability to retain their flavour or even their flexibility in order quantities, inventory management and payment management, especially for smaller cafes.
This article is just a high level of how I personally like to work with brands as a marketer, on their positioning and campaigns. It’s not meant to be an exhaustive list as there is much more to think about. But for starters, as marketers, we should always go back to the fundamental principles of the consumer psyche, marketing principles, proposition and business viability when working on our campaigns.
About the Author
Mad About Marketing Consulting
Ally for CMOs, Heads of Marketing and C-Suites to work with you and your marketing teams to maximize your marketing potential with strategic transformation for better business and marketing outcomes.
Marketing is not just a change of underwear
Someone once asked me what I do as “a marketing person” in a bank. Too fatigued at that time to give a lengthy explanation, I simply said, “I take a bunch of old products, repackaged them a bit in terms of visuals and tagline, and make them look new”. The person laughed and acknowledged it’s the same for his “marketing people” as well.
The above is partially true for most product marketing efforts and how it’s often applied across industries basically.
For example, Person A wakes up one day and realises he’s been losing out to the hotter guys in the dating scene. He took one look at his wardrobe and his grimy face in the mirror, and decided to go for a makeover with a visit to the hair salon and hip downtown mall. With his trendy new look, he does attract some girls but then these girls just somehow don’t become lasting relationships, much to his exasperation.
Talking to some of his previous relationships, close friends and family members, he finally has an epiphany. He realises that due to his tendency to blow up at the slightest displeasure and having too big an ego to apologise thereafter, many of his relationships have failed to progress into something more serious. This means that regardless of how well-dressed he looks, as long as he doesn’t make an effort to change for the better, he will still likely to be a single, lonely and forlorn bachelor ten years down the road. He will date, yes but he cannot be in a relationship for long. In this situation, Person A can choose to go either way - 1) ignore the gaps and continue with just a physical makeover for short term gains or 2) to really spend time to overcome the gaps for longer term gains.
The above is a very simple way of demonstrating the difference between two different business scenarios - 1) a business that simply sells products by repackaging and/or redesigning on the surface or by throwing freebies to attract customers only to have them churn after a year or two or 2) a business who actually makes an effort to transform the mechanics and/or features of their product or service offering in order to keep up with changing customer needs/demands in order to build longer lasting relationships with them.
Based on the same example, if the business realises what is the real problem with its products and make an effort to actually improve them to better cater to the needs of the same customer base, they will find it easier to start building relationships with them. To put it blindly, it’s not as simple as just changing your underwear.
This improvement actually moves the business from selling just a product to selling a solution that resolves a problem or need for their customers – ahead or on par with its competitors.
Again, as organisations move towards solution-selling, they also increasingly realise how daunting a move this is and that it goes beyond just making changes to its products but the way it operates too. Story for another post.
That said, this doesn’t dispel the need for marketing and promotions. It simply means that businesses should move first from product to solution-selling before it goes out to buy a whole new wardrobe.
Meanwhile, before organisations make this move, most marketers can only continue to “make a bunch of old products look new”. As a self respecting marketer, we should also seek to influence the business positively to move towards solution selling by making consistent effort to engage them in our planning and vice versa. Marketing doesn’t exist on its own but more as an enabler of the business to be that voice to bring their proposition to life.
About the Author
Mad About Marketing Consulting
Ally for CMOs, Heads of Marketing and C-Suites to work with you and your marketing teams to maximize your marketing potential with strategic transformation for better business and marketing outcomes.