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What do marketing costs include? Common types of marketing expenses

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marketing costs

How much marketing budget should be used? The answer is that you should invest the most appropriate cost for the specific situation based on the marketing mix, also known as the marketing mix, outlined in your marketing plan.

In this article, we will list the marketing costs you will often encounter based on the Marketing mix strategy of the business.

What is Marketing Expense?

In accounting terms, marketing costs are defined as costs directly related to the sale of products, services or brands. Categories of marketing spending can include printed public documents, press ads, marketing team’s salaries and Facebook advertising expenses …

If the costs are required to run the campaign, but you still incur costs regardless of whether you sell the product or not, this is classified as operating costs. Expenses such as stationery, utilities, insurance and supplies are all necessary to keep the business running.

Now that you understand what marketing costs are and let’s continue to learn about the types of marketing costs that businesses often encounter when operating below.

  1. Personal selling expenses

When a salesperson sells a product by talking directly to a customer, that is called a personal sale. Business owners can handle this job on their own in the early days, but are often handled by experienced professionals who are skilled at finding potential clients for the business, planning outreach and growth. long term relationship with customers.

Regarding the marketing budget, you need to take into account recruitment costs, staff training as well as salary and bonus costs. Personal selling is a “push” strategy because you are bringing products to customers. For best results, don’t forget about the cost of business cards and product brochures and the costs of developing sales scenarios for your salesperson to follow.

2. Website and Digital

marketing costs

Website, blog, social media are information sites that function as your “pull” strategy, meaning that they try to generate interest in what your business is doing and pull customers towards your brand. brand. The “pull” strategy often represents the cheapest forms of advertising.

Designing a website is the first upfront cost, depending on your budget that the cost can be low or high. Once the website is up and running, continuous maintenance costs tend to be lower. Usually, the biggest costs relate to the employees or freelancers you hire for planning, writing content, and optimizing for search engines.

  1. Costs and commissions for the Advertising Company, Agency

If you are new to running marketing campaigns, hiring an advertising agency is the first step in getting your message across to customers. Advertising companies typically charge a time-based fee for the campaign or a commission based on your annual marketing costs.

If your budget isn’t for external advertising agency hiring, you can manage internal campaigns. Any plan should target the media you plan to use – billboards, shipping ads, websites, newspapers, social media, trade magazines, TV, radio, movie theaters, etc. Budget for hiring designers and copywriters to develop creative elements if you can’t afford it.

Even with a DIY approach, advertising can make up a large part of your marketing budget.

  1. Direct campaigns, print and mail

If you think that people don’t use printing these days often, that’s the wrong idea. Research has consistently found that consumers prefer mail to online advertising. Strategically executed direct campaigns can be cost effective to increase sales for your business.

Direct mail includes anything that reaches users like flyers, postcards, sales letters, coupons, special offers, catalogs and promotional materials. If you’ve ever received a pre-approved credit card application or a flyer from a real estate broker informing you of the current market value of your home, it’s a mail campaign direct.

Be careful when budgeting for these components, as you may incur more costs when implementing the campaign. You will have to purchase information to get to your mailing list unless you already have data on your target customers. You need a designer and writer to create the content and don’t forget printing costs, depending on the size, color and quality of your letter.

  1. Salary and Marketing expenses

Staff expenses are also an important part if you hire an in-house marketing team. Large businesses may need a professional team including marketing manager, content manager, graphic designer, email marketing collaborator, press staff and social media manager. Therefore, this portion of the cost can be extended further in the budget.

Hiring freelancers to manage these jobs is a good deal at a lower cost if your budget is tight.

  1. Customer research and survey

marketing costs

While market research may sound expensive, you can get a lot of data cheaply from the internet and industry journals. Online surveys such as surveys from Survey Monkey are quick and inexpensive and can provide valuable information about a customer’s needs and preferences.

Market research becomes a great investment when you need custom details. The budget for a report includes market performance, trends in competitor products, and data broken down by industry or in specific regions or demographics.

You can see more 9 Tips For Managing And Retaining Loyal Customersย 

  1. List of other expenses

Because each company’s goals are different, their list of marketing expenses will be different. Here are some of the other marketing costs you may encounter:

  • Brand developping
  • Business card
  • Marketing consulting service
  • Develop discounts
  • Gifts and samples for customers
  • Sponsor
  • Public Relations
  • Attend the event
  • Marketing Automation tools
  • Analysis


Above is a suggestion about marketing costs that may arise when you run a Marketing-mix campaign. Measuring marketing performance is also an indispensable part for you to control your marketing budget.ย 

Did you use affiliate marketing? How is it going? Feel free to get in touch in the comments section below for any questions or comments. Hope that this article of How to build word of mouth marketing strategyย is useful for you.

Thank you and Best Regard!

Leadee.ai Team


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