This statistic floored me.
Did you know that businesses with planned, documented marketing strategies are over 313% more likely to report successful sales campaigns?
Friends, that’s what those in the world of statistics call a guarantee.
If you’re over 300% more likely to gain sales by doing something, (contingent on it not being illegal) you should be doing that thing!!
And let’s be honest — this isn’t a surprising concept. In fact, you’re probably reading this because you already know you need a marketing strategy. You’re here to answer another question:
“What does it cost?”
Well, you’re not the only one who’s asking!
Today, we’re diving into the cost of creating a marketing strategy, starting with the estimated base costs, variable cost factors and an alternative you can consider if hiring a marketing agency is too much.
And before we go any further — yes, 8 Signal is a marketing agency that specializes in creating fantastic marketing strategies, (if I do say so myself.) But, the point of this post isn’t to convince you to hire us. At least not yet. Let’s go on a couple of coffee dates first.
The point of this post is to give you a tangible idea of the cost of creating a marketing strategy so that you can decide what’s best for your budget and your business.
Let’s do this!
Base Price Estimations:
Much like solving a maze, it’s often most effective to arrive at our goal by working backwards. So, with that in mind, we’re going to look at the average total cost of creating a marketing strategy and then work through each cost component.
The average overall sum that a company will spend on a customized strategic marketing plan ranges from $10,000 – $40,000. Typically, the base cost of creating that marketing strategy begins below $10,000.
Marketing agencies like 8 Signal that serve medical groups, non-profits, and SMBs (small-to-midsize businesses), usually begin pricing with a $2,000 to $4,000 base, whereas marketing agencies serving larger companies and corporations have a much higher base cost.
Common Cost Factors:
After “laying the base,” there are literally hundreds of factors that could affect the cost of creating a marketing strategy. However, you typically won’t experience more than 10 to 15 price adjustment factors, unless you fall under very specific and obscure circumstances.
We’ve consolidated the most common cost factors into five items to give you an idea of what will most-likely drive up the price of your marketing strategy:
Top 5 Marketing Strategy Cost Factors
1. Strategic approach
Every agency has a different strategy, whether it’s a fundamental innovation or a slightly tinkered technicality. (Sidenote, I love tinkers, even though I’m not famous for it — yet.)
Depending on your business and what aspects of their strategy need to be adapted to fit your message, customizing an agency’s strategic approach costs time, consequently raising the overall price.
2. Company size: Client
Depending on the size of your company, your strategic marketing approach may be more involved, therefore increasing your overall cost.
For instance, if you have multiple departments and need each department highlighted in your marketing strategy, that’s going to cost more than if you’re a small operation with only a few areas of focus.
Personally, we like working with organizations that have 2-6 people involved in the creative process of mapping out a marketing strategy. These unique voices give us a well-rounded perspective of the company as a whole without overwhelming the strategic process with information.
3. Company size: Agency
Additionally, the size and scope of your marketing agency can impact the price you pay for your strategy, particularly if you have niche concerns that require expert navigation.
On average, marketing companies with either a larger staff or a more experienced team will be able to handle unique, unexpected nuances for their clients. This can provide more value than agencies that have never worked in your niche or niches that are similar to yours.
Pro Tip: Be sure to ask an agency clarifying questions that give you insight into their experience with your needs before deciding to hire them. Maybe even grab a cup of coffee with them 😉
4. Sales goals
I’m sure it’s no surprise that the specific goals you want to achieve with your marketing strategy will determine how much time is required to map out a plan. And personally, this is an area where we believe the cost is well worth the investment.
CoSchedule — the group that provided the statistics in our intro — also discovered that goal-setting marketers are 376% more likely to have success than those who don’t set specific goals. Of those successful businesses, 70% completed the majority of their goals, and 10% completed every single goal they created.
We promise you — it’s worth spending the time and money to set specific goals for your marketing strategy.
Just like the needs of your business can add to the cost of creating a marketing strategy, the needs of your industry can also drive up your final price.
For example, industries that are highly regulated such as the healthcare industry, government organizations, etc. will take more time for your marketing agency to navigate.
Pro Tip: If the agency you are considering is experienced in working with a particular industry or set of industries, this cost factor could potentially be mitigated. Keep this in mind for the hiring process!
Also, if your company is part of a highly saturated market, your agency may need to innovative unique strategies that keep you above the competition, therefore requiring additional time and — you guessed it — money.
All-in-all, any factor that increases the creation time of your marketing strategy will consequently increase the cost.
Lastly, if you need to lower the cost of creating a marketing strategy, you always have the option to create your own using high-quality online resources.
The financial cost of creating your own marketing strategy is much lower than outsourcing it to a marketing agency. However, this will require a large time investment from you and your team for the research, creation, and implementation of your marketing plan.
Problems with creating a marketing strategy without professional help typically stem from misinformation. To avoid that, we recommend that you check out Impact BND — an amazing, honest, and skilled marketing company that provides valuable insights for strategic marketing. We love them so much that a couple of our team members participate in their monthly Virtual Peer Groups!
Another great resource is DigitalMarketers. Their masterclass on Conversion Funnel Mastery goes in-depth on creating high-converting leads. It not only guides you through the process, but upon completion of the masterclass, you’ll also receive a certification from them. If you’re interested in this course, be sure to let us know: 8 Signal is a Certified Partner and Trainer with DigitalMarketers, so we can get you a discount!
And listen — we don’t want you to rush the decision of how you’re going to spend your marketing budget.
So, while you weigh your options, I want to encourage you to contact 8 Signal for more information on our strategic marketing approach. We’d love to give you an idea of the benefits that come with outsourcing your marketing strategy to a professional agency before committing to any costs.