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Without good budget management, you are likely to overspend on marketing
accidentally.15 Here are three steps that help to make a good marketing budget.


Step 1:Organize financial information
The first step is to be clear of your current financial situation.You need to know how much money your company makes monthly and the changes that might arise in the future. Although income flows change throughout the year,you must organize the information based on reliable revenue - the minimum amount of money your company makes each
month.16
A realistic budget plan will always focus on the income that exceeds the expenses,17 not the total revenue that comes in. When you have determined the amount of disposable income
available for the company,you should determine where the money will go.
Step 2:Determine where you want to spend marketing funds
After you know the total amount available to spend on marketing,the next step is how you plan to spend that money. Three main factors decide how you spend marketing funds:
the budget amount,your past experiences,and where you can reach the right audience.
You will start organizing how to spend the funds based on the amount. Besides,you need to consider the strategies that have worked in the past. Also, you need consider which
marketing channels will allow you to reach the right audience.
Step 3:Assess data and make appropriate changes
The final step in building a good marketing budget is the analysis of the plan and any changes that may improve revenue. Ultimately,marketing is designed to bring in extra revenue.18 If the activity does not bring in any additional revenue over its cost,then it is
better to change strategy and try something else.
Assessing the data is a vital part of creating an effective marketing strategy. 19 Evaluation begins with comparing past performance to the performance after marketing the
product or services.
However,a good budget alone is not enough. You have to take action and remain committed to following through your plan. By keeping the budget in mind when you make decisions,you will have the opportunity to work out different strategies to find the best
solutions for your business goals and prevent overspending on marketing.

21.What should the budget plan be based on?
A. The company.s reliable expense.
B. The company.s reliable income.
C. The company.s reliable cost.
22. What does“disposable income”mean in paragraph 3?
A. Total income. B. Previous income.
C. Net income.
23.You have to be clear of when organizing financial information.
A. the income and expenses B. the marketing fund
C. the budget management
24.The three main factors that decide how you spend marketing funds are
A. the money you have earned, the actual expenses and the money you will expend
B. the budget amount,your past experiences and where you can reach the
right audience
C. the assets you have,the product and the income
25.Keeping the budget in mind when making marketing decisions will avoid
A. using less than you earn B. using money unnecessarily
C. using more than you earn

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