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10th Cairo Marketing Club (Budgeting)by Dr. Haytham Maraee. 30 12-2017

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10th Cairo Marketing Club (Budgeting)by Dr. Haytham Maraee. 30 12-2017

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10th Cairo Marketing Club (Budgeting)by Dr. Haytham Maraee. 30 12-2017

  1. 1. Marketing Club Instructor 1 Budgeting
  2. 2. Company DNA
  3. 3. budgeting is real reflection for your business plan.
  4. 4. More precisely your key business drivers. Non sense to allocate budget for international stand alone consume all budget in mass marketing market and vice versa
  5. 5. Pre launch is the most crucial , the norm to spend the year before launch what equal to expenses of the first year to build concept and brand equity on top of mind.
  6. 6. Year of the lunch you could reach to 25% of sales as marketing expenses but not below 15%
  7. 7. you have to keep same level of expenses for the second year Why Because the market share you will land in 18th month of the launch will be the market share you will fight about in normal
  8. 8. do not build your budget on historical data
  9. 9. • Budgets are not connected to prior year spending Prevents “embedding” of existing spend in the cost base Allows spending levels to be set based on necessary activities of a function, rather than historical trends Requires more work to understand activities and cost structure
  10. 10. Budgets are tied to specific activities and levels of service • • Better aligns spending targets with required activities of a function • • Replaces “do more with less” with “do the right things with the right amount” • • Requires fairly detailed knowledge of departmental activities and willingness to do less or discontinue activities
  11. 11. Spending increases or cuts are not simply spread evenly across budgets • • Eliminates common “sandbagging” practices in budgeting process • • Allows for more strategic allocation of planned spend • • Requires more work to analyze and prioritize activities and expenditures
  12. 12. Funding is targeted more to activities that align with the strategy • • Allows for better alignment of expenditure with overall strategy and departmental missions • • Can reduce incidence of “we’ve always done that” • • Prioritizing activities across various functions can be challenging
  13. 13. Zero-Based Budgeting • • Resulting budget is well justified and aligned to strategy • • Catalyzes broader collaboration across the organization • Supports cost reduction by avoiding automatic budget increases, often resulting in savings • • Improves operational efficiency by rigorous challenging of assumptions • • Costly, complex, and time consuming as budget is rebuilt from scratch annually, whereas simpler and faster traditional budgeting requires justification only for incremental changes • • May be cost-prohibitive for organizations with limited funding • • Risky when potential savings are uncertain • • Execution challenged by budget cycle timing constraints • • Typically requires specialized training or personnel to accomplish, and requires more resources in general • • May be disruptive to the organization’s operations • • Could harm organizational culture or brand
  14. 14. Remember
  15. 15. 10th Cairo Marketing Club 30-12-2017

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