The Chartered Institute of Marketing (CIM) recommends that companies spend between 5% to 10% of their gross revenues on marketing. However, many manufacturing firms spend far less than this.
Let's examine why that's the case.
1) You Don’t Get Dream Customers For Free
Many of the companies that come to me for help are loath to spend money on marketing because their budgets are so tight. They see marketing as a voluntary activity which can be postponed until they have more cash coming in. However, while spending out on marketing may not be a legal obligation, you should view it as a mandatory requirement if you want your company to grow. New customers won't simply stumble upon your company online by accident. You'll need to promote your firm and coax them through your doors and the way to do that is by spending money on marketing.
2) Your Competitors Will Be Budgeting For Success
You may not have a dedicated marketing budget in place, but your rivals certainly will. That means that they'll have the competitive edge when it comes to online visibility for the search terms your customers are plugging into Google. While you're taking a scattergun approach to finding new customers, they'll be getting their message out to your mutual target customers in a clear and consistent way. So, who are those prospects likely to turn to? A firm who is reaching out to them and telling them that they can meet their needs, or a company they've never heard of or can’t find? The answer should be obvious.
3) Your Marketing Budget Is An Investment, Not A Cost
Many manufacturing company owners tell me that they'd love to spend more on marketing, but they need to prioritise other expenditures. The problem is that they're viewing marketing expenditure as nothing more than extra costs. Instead, they should be looking at it as an investment in their company's long-term success, with an achievable ROI that makes every penny worth it. Your firm simply won't thrive without a constant stream of sales. Therefore, you need to keep attracting new enquiries. Spending a percentage of your gross revenue on marketing will allow your income to snowball, taking your business to the next level.
FIND OUT MORE - DOWNLOAD YOUR FREE MARKETING GUIDE
JDR Group specialise in marketing for manufacturers. This includes web design, social media, and marketing strategy.
You can see how we help with our manufacturing case studies, including:
- How this industrial parts supplier got onto page one for 1,782 keywords
- How this engineering company went from 2 enquiries a month to 74
- How this specialist engineering company got over 100 leads a month
- How this manufacturing business generated £3.6m from their website
- How this precision engineering firm built the best web presence in their industry
To find out more, download a free copy of our FREE guide How To Get More Customers In The Manufacturing Industry.
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