Creation of brand awareness, building a loyal customer base and instilling trust in the public – with these three as it’s basic objectives, Email Marketing has become the growing trend today. Owing to the rise of the internet and it’s varied benefits, business ventures are trying to make use of it as much as they can, to garner more profits.
Now one thing extremely important for any type of Email Marketing is forming proper Budget plans for the whole thing. It helps you keep a track of everything and have an idea of where each marketing strategy may lead to.
|Benefits of Email Marketing Plans||Drawbacks of Email Marketing Plans|
|There is a proper sense of direction for the Marketing campaign||They require a lot of extensive research to be formulated|
|All resources are allocated much more effectively||You need a lot of time to make the budget plans|
|All the different department can work in a much more coordinated manner||They can turn out to be very inaccurate with changes in market environment|
|Budget plans let companies exactly assess actual results||They are very rigid in nature|
|Budget plans help in selecting the avenues most likely for success||There is a lot of blaming for inability to meet their predetermined standards|
|Budget plans are the way to achieve the goals of a campaign||They only look at the financial or quantitative side of things|
|They let you keep an exact track of all resources|
Advantages of Email Marketing Budget Plans
- Direction :
Having a proper Email Marketing Budget plan gives the whole organisation a proper sense of the direction(s) in which the money and other resources should be spent and the marketing efforts should be focused. The budget plan highlights the areas that the company wants to improve and the resources can then be used to make those changes.
- Allocation :
The whole budget being planned out, the company can gage almost exactly how much resources is going to be required by all the different aspects of Email Marketing. This helps to decide which of them are allowed to use the resources that are scarce in nature for the company and how much of those resources each of them can use.
- Coordination :
A clear budget plan means every department knows all parts of the Email Marketing campaign. They know the financial resources each department has been allocated, what their targets are to achieve with the resources they have, resources their other departments have, etc. This helps all the departments, be it Finance or HR or Operations, etc. to coordinate better.
- Assessment :
Having a budget plan for any kind of Marketing is extremely important as it gives you a basis for the exact assessment of actual results. Using the budget an organisation can deduce the exact difference the amount of resources that was spent on and the amount of resources that was then earned back from any particular marketing source.
- Success :
A budget plan for Email Marketing is arguably a surefire way to success. All departments know exactly how much they have to spend as does the campaign leading team. So they know which Email marketing avenues that their budget will allow them to pursue. Then they can select the ones which are most likely to give them maximum ROI.
- Achieving Goals :
The Budget plans help to pinpoint if there are any weak points and/or inefficiencies in the Email Marketing plans. In fact budgets are often used as a test to finalise the best Marketing campaign. Once the problems are found, the budget is the way to overcome them in order for the Marketing campaign to achieve it’s goals.
- Tracking :
An Email Marketing Campaign requires all of its resources to be accounted for. There is no better way to do that than Budget plans. A proper budget means the business can keep a track of the exact amounts of resources spent in each part of the Marketing campaign. This also helps to figure out the profit or loss.
Disadvantages of Email Marketing Budget Plans
- Research :
A proper budget is like a roadmap of your entire Email Marketing campaign. In order to finalise these plans the business leaders need to sit down, find out exactly what their goals are, how much resources they have and how much they can allocate, in total, to their whole marketing campaign. All of this requires extensive research beforehand.
- Time :
Planning out the Budget for an entire Email Marketing Campaign is no easy feat. There are a host of different variables involved and all need to be accounted for in the budget. Even minor miscalculations can spell disaster for the whole company. So it takes a long time to prepare and then recheck the budget to iron out mistakes.
- Inaccuracy :
Budget plans are generally based on assumptions, generally not too different from operating conditions of their formulation. Under drastic changes in the business environment, the company’s revenue, cost structure, etc. can radically change making the actual results deviate wildly from expectations in the budget plans. Eg. During sudden economic downturns the budget-authorised level of spending is no longer affordable.
- Rigidity :
Forming budget plans is complex and marketing teams tend to focus their attention on that strategy only during the budget formulation. Rest of the campaign, every department follows the budget plans rigidly. So if the market shifts fundamentally after the budget plans have been finalised, the company could be facing much more problems than other, more nimble competition.
- Blame Game :
In case a department cannot deliver upon the targets set by the budget plans, the department manager can start blaming all the other departments that were fixed to provide services to their department, for providing less than adequate support. The department itself can be blamed by the campaign leaders to be performing below par.
- Only Financial :
Budget plans are inherently numeric and thus tend to focus on the quantitative sides of the Marketing campaign. Concepts relating to budget plans do not actually encompass the requirements of the customers. It is extremely hard to install these concepts into budget plans as they are qualitative in nature. Customers are interested in the quality of product they acquire.
So there are obviously a number of problems that crop up with the formulation of budget plans for Email Marketing, including time requirements, inaccuracy, etc. However one can never deny that to make any kind of a successful marketing campaign you need to plan out everything properly and to do that clear budget plans are arguably impossible to overlook.