When you have a brand-new product that you’re getting ready to market and promote, you naturally have to have a detailed budget.

Nowadays, marketing and promoting a product or service can include both standard and digital efforts, but before you take out that very first ad, you need to decide how much money you should spend with each type.

Do not worry, though, because once you list and spell out everything that you want to do, you can research and learn how much it’s going to cost you.

How Much Does Marketing Cost?

Marketing a product or service successfully involves various types of promotion, so you’ll first need to make a list of all of the types you intend to use.

Marketing can include standard and digital ads, attending trade shows, email marketing, social media utilization (which includes SEO and SEM efforts), flyers and brochures, designing the perfect website, and so much more.

It sounds overwhelming, but in today’s high-tech world, utilizing a very diverse way to market and promote your product is a must. This is especially true if you’re marketing to young people because they are accustomed to being reached on all types of digital platforms. If you’re not comfortable with working online, you might want to work to change that first.

As far as the cost is concerned, it is difficult to pinpoint an exact amount because the product or service itself will directly affect the number.

As a general rule, you can expect to pay anywhere from $100,000 to $1.5 million to successfully promote the product. Keep in mind that promotional and marketing efforts should be thought of as ongoing responsibilities and not just a one-time task.

Types of Promotion and Marketing to Consider

Before going any further, it’s a good idea to research the various types of marketing and promotion for your product or service.

Each marketing idea will work best with certain products, so what works best for your particular product might not work as well for another product. Nevertheless, there are methods of promotion that most products or services need, and they include the following:

1.  Media (Traditional) Advertising

These are visual methods that include billboards, web banners on other websites, public benches, shopping carts, and even wall paintings. If it’s very visual and eye-catching, you can consider it to be some type of media advertising and it’s a very effective method indeed.

2.  Covert (Indirect) Advertising

You can think of this as a subtle type of advertising because the product is not going to be blatant or obvious, nor will it be the very first thing that people notice.

Examples would include when a celebrity or athlete wears a hat or shirt made by a particular brand or company, and when someone who’s being interviewed mentions your brand or company.

3.  Digital (Online) Marketing

Digital marketing includes platforms such as social media sites, websites, and email. If it’s online, it’s an example of digital marketing, and this is also an example of direct marketing.

Direct marketing is any method that includes a direct approach to a potential customer without going through a more subtle form of promotion.

4.  Direct Selling

Also called personal selling, direct selling is where the product is marketed directly to the consumer, usually in the form of salespeople directly interacting with potential customers.

While door-to-door selling isn’t as common today as it once was, this is a perfect example of direct selling. Another example is setting up a booth at a festival or other public event to sell the product.

5.  Television/Radio Advertising

Commercials on television and/or radio are usually inexpensive when you consider how many people they reach. Commercials can last from 15 seconds to two minutes and can be run during certain programs to personalize the audience and reach more of the people you need to reach.

6.  Internet Advertising

There are numerous ways you can advertise your product online. These include ads on other websites and even ads on crowdfunding sites, which can also serve as a way to get funding for your business. There are tons of types of Internet advertising that are worth looking into and researching.

7.  Public Relations

You can think of public relations as an ongoing effort because creating a good image of your product and your company name is not something that will happen overnight.

Even once you feel as though you’re an established company, sending out press releases regularly and reaching out to editors and influencers is something that should be a regular part of your life.

What Is All of This Going to Cost?

Again, the cost will vary depending on your personal situation, but plan to spend the following on your efforts:

• Internet efforts (web design, social media pages, email campaigns, etc.): $1,000-$25,000 per month; $500-$5,000 for the design of your website
• Public relations and trade shows: $1,000-$10,000 per month
• Ongoing efforts to maintain and continue growing the business: $1,000-$15,000 per month

These amounts may sound high but remember, if you do it right, your marketing and promotional efforts are going to pay off because of the money you’ll be getting back in the form of sales that you wouldn’t receive otherwise. As long as you’re targeting potential customers, you’re going to be making money on a regular basis.

How Much Does Email Marketing Cost?

Email marketing is an important component of your promotional campaign because it helps you stay in constant contact with your customers and potential customers.

And you don’t even have to do it yourself. There are now software packages that you can use that will send the emails out for you, and they’ll send them regularly so the recipients don’t forget about you.

To be sure, email marketing is an important part of your marketing campaign. Today, the average company spends roughly 8% of their budget on email marketing alone. In fact, mid-sized companies can spend up to $1,000 per month on these emails, but without them, customers can forget about you and potential customers can be difficult to reach.

Some of the things that affect the cost of email marketing include:

• A good email list, which you can get by tasks such as including calls to action (CTAs) at the end of each email
• Technological tools, such as an email validation API to avoid bounces and keep the list up-to-date at all times
• Good creativity, which includes live writers to make sure the content is fresh and applicable

If you’re going to spend any money on email marketing, it pays to do your due diligence and take measures that will increase the odds that the emails produce the results you want and need to grow your business.

Conclusion

You can expect to spend from $100,000 to $1.5 million to successfully market and promote your business. It is best to shop around if you intend to use an outside company for any of these efforts so that you get the best price.

Keep in mind that promoting your business and gaining customers on a regular basis should be considered an ongoing task. For most businesses, there is an attrition rate, which means that you have to continuously gain new customers to replace some of the existing customers who decide to leave.