How much should you spend on marketing is a question I get asked a lot.
Let me see if I can answer it.
There are companies who spend a huge amount on marketing. Red Bull is, perhaps, the most famous of these. The costs of running an F1 team, an international go-kart series and sponsor huge numbers of adventure junkies doesn’t come cheap. The last figure I saw was 38% of revenue.
At the other end, there are companies who spend almost nothing. If they can get all the leads they need through word of mouth, I wish them all the best.
So let’s return to the question. Seeing as I am a consultant, let’s start the answer by asking you a question – or three.