Larry Bodine had an interesting post over at the Professional Services Marketing blog on the topic of marketing budgets. During a web conference with Suzanne Lowe of Expertise Marketing, the question was asked "Can you define marketing budgets? The question prompted his post.
Below Larry lists the components of a what looks to be a typical marketing budget for a law firm from "LMA Law Firm Marketing Budgets, 2001." I then list those items that comprise Mercer Capital's marketing budget. We're not a law firm, but as a professional services firm, we share many of the same attributes.
How do they compare to your firm's marketing budget? Keep reading:
According to the LMA Law Firm Marketing Budget, a marketing budget is typically comprised of:
- Marketing department total compensation
- Professional-client meals and entertainment
- Tickets
- Charitable and civic event sponsorships
- Advertising
- Events planning and execution
- Collateral marketing materials
- Directory listings
- Charitable and civic dues and memberships
- Public and media relations
- Website design and maintenance
- Presentations by professionals
- Client gifts
- Postage for marketing mailings
- Holiday cards
- Consultants on strategic planning and marketing
- Marketing training
- Marketing staff professional dues, meetings, travel
- Firm network dues and expenses
- Trade association dues and expenses
- Marketing staff training
- Marketing staff overtime
Now, Mercer Capital's broad categories that comprise our marketing budget:
- Advertising
- Targeted Business Development Trips
- Targeted Direct Mailers
- Marketing Education (conferences, seminars)
- Newsletters (print & fulfillment)
- Public Relations
- Sales Training
- Presentations by Professionals
- Trade Show Exhibiting
- Web consulting/design/blog/hosting
- Promotional items (highlighters)
You'll notice that we do not include compensation for the marketing staff, meals or other entertainment (tickets, etc.), dues for professional associations, sponsorships, and postage for mailings.
Why do we do it this way? Because it gives us a truer picture of where our real marketing dollars are going. Categories like entertainment/meals, gifts, etc. are captured elsewhere as is staff compensation. Some of these activities are certainly sales or business development-oriented and from his post, I believe Larry has a problem mixing the two, but in reality there is a natural overlap.
Both Larry and Suzanne's blogs are daily reads for me and I respect and appreciate their contribution to the dialogue. I know that Larry is trying to sell the research survey and I have no problem with that. I've been given to hyperbole when I've been pushing a product from Mercer Capital. So, keep that in mind as you read further.
Larry's last point is that the LMA list is a "lame" list because none of the activities showed up in his and Suzanne's marketing and business development research as an activity that produced the "best results". I have not bought their study; however, from what I've found on Suzanne's blog:
Professional firms that said they were extremely effective used three particular client-focused metrics in combination with each other. These three are: (a) Growing client revenue: “Did you grow revenue with your client or not?” (b) Moving the phases of a sale through a pipeline: “Did you close the sale or not?” and (c) Listening to the client: “Did you listen to your client or not?”
We seek to do all three with the tools currently available to us. As such, they don't show up in the marketing budget. Larry, can you help us out and give us a hint as to what you are referring? If so, I might be more inclined to purchase the study.
Larry's last paragraph, while speaking to the women in our profession (am I being too sensitive?), strikes me as a bit too shrill:
If you're a marketer who wants to preserve her job, deserve a pay raise and make a difference at her firm, focus on activities that can be measured to show ROI. If it can't be measured, don't do it. (italics mine)
In a future post, I'll share my thoughts on marketing ROI. In the meantime, what constitutes your marketing budget?
Comments