2018 Marketing Budget Strategies

Posted on January 30, 2018 by bermanevansretail

Today, we present the second in our three-part series on the marketing budget. This topic merits the detailed coverage. Yesterday, we began with 2018 Marketing Budget Trends. Now, we cover 2018 Marketing Budget Strategies. And we conclude tomorrow with our 2018 Marketing Budget Free Templates.

Consider this observation from Myriam DiGiovanni for The Financial Brand

“You’ve heard the famous quote about marketing budgets before: ‘Half the money I spend on advertising is wasted. The trouble is I don’t know which half.’ This quote is attributed to John Wanamaker, a famous retailer and marketing pioneer from the 1800s. The good news is that Wanamaker believed half his marketing budget actually worked. The bad news is that the problems with marketing attribution persist even today. After all, when your CEO asks for proof that the money spent on marketing is getting results, what can you say?”

 

2018 Marketing Budget Strategies: Background

Which type of marketing spending gets the biggest bang for the buck (ROI)? In a recent survey of 2,500 digital marketers, respondents reported on what marketing activities generated the best ROI. And this is highlighted in the following chart. Click on it for a more readable version.

2018 Marketing Budget Strategies: Background

 

Further, consider this from Chis Leon for Web Strategies:

“In a 2017 report from Hanapin Marketing, 75% of respondents expect to increase Google Adwords spending in the next 12 months (more than any other digital channel). Facebook expects to see increased investments by 71% of respondents. Instagram and Twitter, by comparison, expect to see increased investments from less than half of respondents (46% and 21% respectfully). Snapchat was at the bottom of the list, with only 15% of respondents expecting to increase investments into 2018.”

2018 Marketing Budget Strategies: Background

 

2018 Marketing Budget Strategies: Tips

As Mark Schmukler observes for Marketing Insider Group:

“It’s never too early to start working on your marketing plan for the upcoming year. [And many firm work on fiscal year.] For B2B and B2C marketers, there are many ways your budget will impact your marketing capabilities and strategy. Use this guide to assess your current marketing practices and discover the marketing methods you may want to introduce in the next year. After all, your budget is likely an untapped resource for your marketing team. And might allow for optimization, integration, and innovation. In any case, use this guide to get a jump start on your 2018 marketing budget and determine what tactics you should incorporate to make the year a successful one.”

Click on the Schmukler link above to read his guide. As we see, it consists of these tips:

  1. Analyze and Benchmark Past Marketing Successes.
  2. Determine 2018 Marketing Goals.
  3. Consider Marketing Channel Options.
  4. Prioritize Your Needs.

 

Posted in Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing | Tagged , , , , | 1 Comment

2018 Marketing Budget Trends

Posted on January 29, 2018 by bermanevansretail

With this post, we begin a three-part primer on the marketing budget. This topic merits such detailed coverage. Today, we look at 2018 Marketing Budget Trends. Then, we cover our 2018 Marketing Budget Strategies. And we conclude with our 2018 Marketing Budget Free Templates.

This material builds on our earlier discussions. For example, see: Marketing Tips for Small Businesses, Creative Uses of Guerilla Marketing, Budgeting for Social Media Marketing, and How to Do Better Marketing Budgets.

Without a well-conceived marketing budget, it is hard to accomplish the following: Measure performance. Allocate resources where they are most needed. See how much a given strategy will costs. And lots more.

 

2018 Marketing Budget Trends

As we look forward for 2018, let us first look back at 2017. According to Marketing Charts, based on data from Econsultancy: “An Intelligence Briefing by Econsultancy in association with Adobe asked almost 3,500 marketers around the world how their spending on various digital marketing channels and disciplines would change in 2017.” The chart shows the expectations for digital marketing budgets.

2018 Marketing Budget Trends -- Looking Back at 2017

In its 2017-2018 survey of 353 chief marketing officers, Gartner found that:

“Marketing budgets hit a plateau in 2017 after three years of growth. While the descent is not steep (yet), it still poses difficult questions for CMOs. Can they continue to fund broad commitments for customer experience and innovation while delivering core marketing programs? How can they ensure that the investment in people and resources delivers solid ROI today while preparing for capabilities needed tomorrow? How can investments in technology deliver value to the business and secure future commitments?”

“One thing is clear — previous budget increases have come with weighty expectations, some of which have yet to be met. Marketing must show its financial management credentials, proving it can deal with financial constraints. And it must have accountability for business performance. As well as build budgets based on future returns rather than past assumptions.”

Finally, here two excellent marketing budget charts for 2018 compiled by 60 Second Marketer.

2018 Marketing Budget Trends - By Industry

2018 Marketing Budget Trends - by Industry
 

Posted in Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing | Tagged , , , | 3 Comments

What Consumers Want in Returning Items

Posted on January 25, 2018 by bermanevansretail

Today, we consider what consumers want in returning items. And this is a topic that we have studied before. Reverse Logistics: How to Improve the Retail Returns Process. UPS to Aid Retailers in Return Process. How Shoppers Use the Return Option for Online Purchases. L.L. Bean’s Dominant Edge: Its Return Policy. After all, the purchase process is not complete until a customer is given the opportunity to return a product. And a stress-free return policy is likely to result in repeat business.

What Consumers Want in Returning Items Today

So, what factors are most important to consumers when they return products? We know that these factors will affect customer satisfaction, purchase loyalty, and reviews on social media.

Recently, Promocodes.com conducted a study on the most important factors in the return process. And it compared these factors for store shopping versus online shopping.

Promocodes.com’s findings are highlighted in the following eMarketer chart.

According to eMarketer:

“Returns are a big thing for consumers. So much so that many avoid shopping at retailers with strict return policies in place. In fact, more than half of U.S. Internet users surveyed by coupon and discount Web site Promocodes.com last November agreed that they avoid such places. While over a quarter of respondents agreed strongly.”

“When it comes to various return policy options, many consumers look for the same thing. For example, when shopping in-store, 37.9% of those polled said getting a full refund — not just an exchange or store credit — was their most important return-related concern. Almost as many consumers (33.6%) felt the same way with regard to digital shopping.”

“Whether shopping in-store or online for gifts (either for themselves or others in the past six months), a good number of respondents said it’s important that the retailer accepts returns without tags or original packaging. What’s more, nearly as many said it’s important that retailers accept returns for used items.”

What Consumers Want in Returning Items

Now, consider these questions. Should firms always give full refunds? Should they accept returns without receipts? And should firms always offer free shipping? Aren’t there times when firms’ costs outweigh their benefits?

 

Posted in Online Retailing, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Technology in Retailing | Tagged , , , , | 1 Comment