Delivered November 22, 2019. Contributor: Gbolahan G.
To determine how much a company should spend on advertising a new business category or product.
To identify three case study examples of companies that have organized forums to connect people as part of their corporate social responsibility objectives.
Marketing Spend on New Business Category
Several factors should be considered when determining how much to spend on pushing a new business segment or product. Such factors include the age of the business, its size, consumer buying behavior, market competitiveness, and overall company margins.
The Small Business Administration (SBA) office encourages small businesses with revenues less than $5 million to allocate 7-8 percent of their revenues to marketing. The article went on to state that in actual practice, many businesses allocate between 3-5 percent of annual revenue to start-up marketing or launching new products.
In a recent study by Deloitte which focused primarily on established companies and their chief marketing officers, well-established companies typically spend between 7.7% of their total marketing budget on introducing new products. Also, 67% of companies surveyed stated that they make use of social media when introducing new products.
According to Inc.com, businesses should be willing to spend about 7.7% of gross revenue on marketing.
Summary Of Our Early Findings Relevant To The Goals
In our initial hour of research, we were able to determine the recommended and actual marketing spend on launching new product categories in both small and established firms.
Due to time constraints, we were unable to identify case studies of companies that have organized forums to connect people as part of their corporate social responsibility objectives.
Only the project owner can select the next research path.