Cost of Marketing

Cost of Marketing are part of the Customer Acquisition Cost (how much it costs to acquire a customer) and include direct cost to create new business and create leads. 

In Lean-Case, you find 2 widgets to capture Cost of Marketing

  • the Cost of Marketing Widget (described in this section)
  • the Cost of Leads Widget (which allows  more specific entry of lead cost)
Add Cost of Selling

This is why the Lean-Case Cost of Marketing Widget is part of the Lean-Case Revenue Models but is based on the general Lean-Case Expense Widget

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Cost of Marketing include all direct cost to create new busines, typically covering costs for advertising, promotion and public relations.

Amounts vary based on the size of the business, its annual sales and how much the competition is advertising. Depending on the industry, marketing budgets can range from as low as 1% of sales to over 30%. New companies may spend as much as 50% of sales for introductory marketing programs in the first year.

Smaller business may just try to match the spending of their direct competitors.

The overall marketing budget should include:

  • print and broadcast advertising
  • design and printing costs for all print materials, such as newsletters, brochures and press releases, direct mail costs
  • Web site development and other services such as SEO optimization
  • Public Relations
  • Trade Shows and
  • other special events needd
Add Cost of Selling

We suggest to capture indirect cost of marketing as part of the Headcount Teams  and Sales & Marketing Operating Expenses. These typically include overheads for Marketing Management and Marketing Support Functions.







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