Marketing Spend: Measure Your Leverage

As the economy recovers, marketing spend is increasing. Matching competitors' spend is an insufficient method and this article offers a three-step plan to determining the correct level when asing for a budget increase.

Marketing Spend: Measure Your Leverage

Pat LaPointe

A three-step plan to determine the right marketing spend level

As the economy slowly recovers, CMOs are looking once again to boost their marketing spend in pursuit of top-line growth. Yet in discussions I've had with many CMOs and CFOs across industry groups, the two most common methods for determining ideal marketing spending levels are still:

  1. How much did we spend last year?

  2. What percentage of sales spent on marketing is most common in our industry?

Which is odd given that the quickest way to lose credibility as a CMO (or as any...

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