One of the least frequently asked questions in marketing is, sadly, one of the best ones. And it's another reason why the frequency of pratfalls in marketing is so high: How do you budget for a project? One of the most important purposes of the marketing plan, aside from forcing everyone to be on the same page, is that it gives a company the chance to develop a model around the appropriate mix of activities you're going to conduct. Evaluating product price-points, distribution methods, positioning and promotions helps determine the amount money you'll need to invest in the effort. This enables you to project a return on that investment, perhaps based in part on benchmarking competitors or other players in your industry.
Whether you're creating a new market or competing against an entrenched leader, however, the watchword is reality. It is absolutely imperative that you prepare a realistic plan, and not just try to substantiate your fantasies. This might throw cold water on the enthusiasm of some individuals, but you will be pouring the foundation for the the long term. For example, some early-stage companies underestimate the cost of launching a brand. It takes far more resources to do anything new than it does to maintain anything already in place. Under-budgeting is something to be avoided every bit as much as excessive spending. Too little money spent is often money wasted.
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