The most common way to calculate a branding promotion budget for a business is to set a percentage of sales value. The value of this percentage varies. For small businesses, a branding fee of 5% can be budgeted from the estimated sales results.
For example, if the estimated sales value this year is IDR 300 million. Then the funds that need to be allocated for branding costs are 5% or IDR 15 million.
Modifications will depend on several factors specific to our business, such as how long the business has been running. The types of products or services offered, how far the location of the business is, and the type of consumers targeted.
It may be necessary to allocate more promotional budget to new businesses selling innovative products.
For an established business, with a better distribution network and a low level of competition, the budget for branding can be made smaller.
Keep in mind that all branding activities should be viewed as a business investment. Not as a cost-intensive activity.
Promotion is also not only necessary if we have more funds.
And this investment must also be profitable. So the branding costs incurred must be doubled again in the form of sales value.
There is no point in spending any promotional funds, no matter how small their value is if they don’t produce results.
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The explanation above is about branding complete with elements, types, and goals. Hopefully, the information above is useful.