Mark Ritson backs Tracksuit’s marketing budget calculator
Tracksuit has launched a first-of-its-kind budget calculator to help businesses more accurately calculate their annual brand and sales activation budgets.
The announcement:
Brand tracking software company Tracksuit has launched a first-of-its-kind tool to help businesses more accurately calculate their annual brand and sales activation budgets, as it continues its quest to champion brand marketers.
The new brand budget calculator is the first interactive calculator of its kind, built using the proven 60:40 methodology of globally renowned marketing and advertising effectiveness experts, Les Binet and Peter Field.
“Rather than a six-figure ramble in the jungle of dodgy econometrics, why not trust this data – which is, after all, built from hundreds of previous case studies? It can provide very useful parameters for how much of your 10% of revenues should go to brand building versus the amount dedicated to the performance team. The New Zealand brand tracking firm Tracksuit has even produced a super-cool, super-simple calculator that takes all the Field and Binet variables into account for your business and spits out an ideal split between long- and short-term investment,” Mark Ritson, brand consultant and former marketing professor, said.
Tracksuit co-founder James Hurman said 60:40 has brought academic rigour to a decision that has long been left up to ‘gut feeling’ by marketers.
Hurman
Hurman said: “Getting the budget balance right between longer-term brand marketing campaigns and short-term sales activations ensures businesses are building demand with future customers through brand strategy campaigns, while also seeing short-term wins through sales activations with immediate prospects.
“No one can argue with the fact that marketers tend to spend too much of their budgets on performance and too little on brand. What 60:40 does is get marketers thinking in the right direction and our Marketing Budget Calculator is a simple tool to help make budget allocations more accurate.”
The Calculator’s formula is completely customizable to businesses based on their size, product pricing and category life cycle, and other factors. This means the budget split can be more like 70:30 for some brands, and 50:50 for others, depending on the factors used to calculate the split.
Christine Jensen, Marketing Manager, Kernel, and a Tracksuit customer, said: “Tracksuit’s calculator is helpful for us to understand and use the methodology for Kernel’s ideal marketing budget split. With these results and data, we can be more confident in advocating for additional brand building campaigns. It’s also helpful knowing that there’s a tool to engage with if our team wants to dig into the data and understand the rationale.”
Hurman continued: “The intention of the Calculator is to steer marketing spend back towards long-term brand building and balance the trend of businesses over-indexing into short-term performance marketing, simply because it can be easily measured and managed digitally.
“The Marketing Budget Calculator brings marketers one step closer to actionable data with which they can make decisions to successfully build and grow their brands,” he concluded.
Source: Extollo
