Essentially what it says on the tin - what is your framework for determining overall marketing budgets and individual channel allocations within a given time period?
I've worked with and for many vendors and with many dealers over the years and I've yet to come across an objective, consistent framework for determining marketing budget and allocations in a given time period. I feel like this is low hanging fruit and someone must have some logic built around it so I wanted to see what was out there.
My experience has been most often that budget are set by either asking the vendor, which has inherent conflict of interest, or by comparing to 'similar stores' and spending what they spend, which assumes what they spend is rooted in some effective logic. Another method I've seen is allocating a fixed $ value based on last month's sales or the current sales forecast.
I've worked with and for many vendors and with many dealers over the years and I've yet to come across an objective, consistent framework for determining marketing budget and allocations in a given time period. I feel like this is low hanging fruit and someone must have some logic built around it so I wanted to see what was out there.
My experience has been most often that budget are set by either asking the vendor, which has inherent conflict of interest, or by comparing to 'similar stores' and spending what they spend, which assumes what they spend is rooted in some effective logic. Another method I've seen is allocating a fixed $ value based on last month's sales or the current sales forecast.
