How to Build a Marketing Budget Around Business Targets
A marketing budget should be connected to revenue targets, conversion assumptions and operating capacity.
Working record
| Check | What to do | Evidence to retain |
|---|---|---|
| Start with commercial targets | Translate the revenue target into required customers or opportunities using the offer and average sale assumptions. | The start with commercial targets record, its source and the person responsible for resolving missing evidence. |
| Model acquisition economics | Connect spend, conversion and customer contribution in the same scenario. Record which values are observed and which are planning assumptions. | The model acquisition economics record, its source and the person responsible for resolving missing evidence. |
| Allocate by role of channel | State whether each channel is intended to create demand, capture enquiries, nurture prospects or retain customers before assigning budget. | The allocate by role of channel record, its source and the person responsible for resolving missing evidence. |
| Reserve budget for testing | Compare the approved spending limit with committed costs, variable usage and a stated reserve. | Dated estimate, inclusions, payment timing and approval owner. |
Review the decision
A marketing budget should be connected to revenue targets, conversion assumptions and operating capacity. Keep start with commercial targets, model acquisition economics, allocate by role of channel attached to the conclusion so the next owner can challenge the assumptions. Resolve missing evidence before treating this record as approval.
Continue the decision
How to Connect Marketing Activity to Revenue Without False Precision · Cash Runway: How to Calculate It and What to Watch.
Calculation and source notes
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.