Factors in a Marketing Communication Budget Plan

                A marketing communication budget plans for and measures the impact of marketing communication spend.  It is a part of marketing planning and sets targets for not only spending but return on investment (Linton, 2017).  A marketing communication budget covers the messaging that communicated out to consumers in the form of public relations, online marketing, events, advertisements, billboards, printing, trade shows, website design, promotional items, and mailings (Smyth, 2020).

                When making marketing communication and budget allocation decisions, marketing managers must determine the target market, market segments, and markets where the company would benefit most from marketing investment in the long- and short-term (Smyth, 2020).  Marketing managers have to determine what the best ROI will be across different cost items (ads, events, online marketing, etc.) (Smyth, 2020).  Results and ROI from the previous quarter and the previous year’s expenditure is a feedback loop that plays an important role in determining the marketing communication budget.  KPI performance for the last quarter and year are important as well (Smyth, 2020).  Another factor that must be considered is what agencies or platforms will be used, as each has its own efficiencies and expense (Linton, 2017).  Another factor is timing.  Promotion is often the hype before and during the initial launch, but can be further in the lifecycle.  Promotion can be short-term bursts, but they do have long-term loyalty effects.  Advertising is usually a longer-term strategy, is more expensive, and is more targeted (Milano, 2019).

                Timing and where the product is in its lifecycle are factors that determine how much marketing communications budget is allocated towards promotion and advertising.  If the product is at initial launch, a lot of money is spent in both advertising and promotion to build hype around the product.  Initial sales, samples, and special offers are examples of promotions that might be used to move product and generate short term revenue.  Advertising is the paid messaging that is used to build awareness and excitement about the new offering.  As the product moves through its lifecycle, advertising messaging will change, and ad spend may decrease.

                ROI and KPis are important factors in deciding the allocation.  If the expected ROI of an advertising campaign is higher than a promotion, then the communications budget would be allocated in favor of the advertising spend.  Certain KPIs may necessitate more promotion or more advertisement.  For instance, a strategic goal of getting a PC on every desktop may have a KPI of “% of desks with PCs.”  In addition to an ad spend which communicates the need for everyone to have a PC, there would need to be consistent, ongoing promotions which would burst toward that goal, give people sales and incentivize them to buy their PC.


Linton, I. (2017, September 26). What is a Marketing Communication Budget? https://bizfluent.com/info-8119264-marketing-communication-budget.html

Milano, S. (2019, January 28). What is the Difference Between Advertising and Promotion. https://smallbusiness.chron.com/difference-between-advertising-promotion-52856.html

Smyth, D. (2020, September 17). How to Prepare a Marketing Communication Budget. https://smallbusiness.chron.com/prepare-marketing-communication-budget-62386.html

Published by Art Ocain

I am a DevOps advocate, not because I am a developer (I’m not), but because of the cultural shift it represents and the agility it gains. I am also a fan of the theory of constraints and applying constraint management to all areas of business: sales, finance, planning, billing, and all areas of operations. My speaking: I have done a lot of public speaking in my various roles over the years, including presentations at SBDC (Small Business Development Center) and Central PA Chamber of Commerce events as well as events that I have organized at MePush. My writing: I write a lot. Blog articles on the MePush site, press-releases for upcoming events to media contracts, posts on LinkedIn (https://www.linkedin.com/in/artocain/), presentations on Slideshare (https://www.slideshare.net/ArtOcain), posts on the Microsoft Tech Community, articles on Medium (https://medium.com/@artocain/), and posts on Quora (https://www.quora.com/profile/Art-Ocain-1). I am always looking for new places to write, as well. My certifications: ISACA Certified Information Security Manager (CISM), Certified Web Application Security Professional (CWASP), Certified Data Privacy Practitioner (CDPP), Cisco Certified Network Associate (CCNA), VMware Certified Professional (VCP-DCV), Microsoft Certified System Engineer (MCSE), Veeam Certified Engineer (VMCE), Microsoft 365 Security Administrator, Microsoft 365 Enterprise Administrator, Azure Administrator, Azure Security Administrator, Azure Architect, CompTIA Network+, CompTIA Security+, ITIL v4 Foundations, Certified ScrumMaster, Certified Scrum Product Owner, AWS Certified Cloud Practitioner See certification badges on Acclaim here: https://www.youracclaim.com/users/art-ocain/badges My experience: I have a lot of experience from developing a great company with great people and culture to spinning up an impressive DevOps practice and designing impressive solutions. I have been a project manager, a President, a COO, a CTO, and an incident response coordinator. From architecting cloud solutions down to the nitty-gritty of replacing hardware, I have done it all. When it comes to technical leadership, I am the go-to for many companies. I have grown businesses and built brands. I have been a coach and a mentor, developing the skills and careers of those in my company. I have formed and managed teams, and developed strong leaders and replaced myself within the company time and again as I evolved. See my experience on LinkedIn here: https://www.linkedin.com/in/artocain/

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