Budgetsby Scott C. Gladden, Corporate V.P.; Marketing and Business Development, AGRA Earth & Environmental Inc.,
Arnold Olitt, Deceased,
Marketing budgets vary greatly from company to company. They will be much larger, when you calculate labor as a percentage of total marketing costs, for smaller firms than larger ones. For example, if your firm employs five people and one person spends his entire time doing marketing, you can readily see that 20 percent of your firm's billable time and therefore, up to 20 percent of your income, will be used for marketing. This assumes, of course, that you will charge your marketing time at billable rates. Many surveys of costs and budget expenditures are available as guidelines for setting a marketing budget. One of the most concise compilations that we have seen is the PSMJ Financial Statistics Survey published yearly by Practice Management Associates, Ltd. A copy of this document can be received by mailing a request to PMA, Ltd. at Ten Midland Avenue, Newton, MA 02158. This survey tallies, by geographic region and firm size, the income statements, marketing costs, staff ratios, and so on, for approximately 400 professional service firms in the United States and Canada.
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