Never forget marketing expenses when starting a new business.

Marketing expenses are often underestimated or even overlooked, but it’s critical they be accounted for

Most entrepreneurs underestimate the amount of funding needed for marketing in order to make their product or service a success. For new products, it is advisable to allocate about 70-80% of the total budget to marketing initiatives. After all, people will not buy a product if they do not know it exists.

Aside from mere awareness, marketing also gives people a sense of what the product is. A good marketing initiative explains why people should choose the product, and tie the product to a lifestyle or larger concept. The business’s brand values and target audiences will play a key part in directing the plan.

Advertising is a component of marketing. It is the act of letting potential consumers know that a product exists. In the product or service’s early stages, advertising is quite important since the product is new. Entrepreneurs should be prepared to purchase ad space in relevant print or online publications to increase general awareness of the product among potential consumers. Trade publications and websites are an often-overlooked component of this, but the advantage is that for relatively low ad costs, a company gets exposure to very targeted audiences that may be more likely to purchase their product or services.

Once a knowledge of the brand is established, an entrepreneur may be able to rely on additional marketing tactics. For example, it is important to have an informative website that lets the audience know about the product or service and how it is different from other competitive products and services. In order to be effective, it may be necessary to use advertising and search engine optimization ( SEO) to drive your audience to the website. The website should also be mentioned in any visual promotional material. Although using e-commerce to allow people to purchase a product or service online is not strictly necessary, the website should explain how and where the product or service may be purchased.

It may also be worthwhile to engage a public relations consultant or agency so that the media are aware of the product or service. Print, broadcast, radio or television coverage often helps drive consumers to a website, and makes them more aware of the advertising initiatives that have already been created. Product reviews and other media coverage are often more in-depth than purchased advertising, and allow potential consumers to get a better sense of your overall brand. Public relations initiatives give a company brand awareness and marketing exposure, but not from the company directly, which means audiences may trust these strategies more than general advertising. PR can also be a cost-effective way for smaller companies to gain exposure.

Although it is possible for a product’s marketing initiatives to exist solely online, to be successful, the marketing campaign must be well-targeted and have a large presence in the space. To gain the most traction, a marketing campaign should effectively use both online and offline messaging to reach its audiences.