The Second Step: Entrepreneurship, How To Spend Money On The Knife Edge.

　 Press strategic planning Allocation budget

　　 Administration The budgetary form at the very beginning is just a form showing the items that need to spend money (all kinds of brands) and money expenditure projects (all kinds of spanmission ways), leaving a number in the blank space. Administration People need to specify rules to ensure proper budgetary allocation under the principles of consolidating mature products, enhancing growth products, and developing new products in the import period according to the development of different categories, the business status of different brand products, the maturity of different regions and the expected sales volume distribution per month.

Because enterprises must continue to develop, we must constantly support the development of alternate brands and products, cultivate new forces, and maintain a good echelon sequence of brand products. But in the old budgetary allocations of sales and distribution, the growth products and new products of enterprises are hard to develop. The fundamental reason is that they do not have strong budget support. These products, because of their small contribution to sales, and little support for their dissemination, make the product development of enterprises form a distinct "Matthew effect": the better the support of the products is, the more willing the salesmen are to promote; the less the support of the weaker products gets, the less the sales force will lose, and the less they will be left behind.

Faced with harsh reality, Administration People have to rethink and adjust the proportion of category and brand product development, and pay enough attention to budget allocation. The total budgetary quota is usually based on the 3%~5% of estimated sales. Considering that the competition pressure in the coming year is too great, or the growth of new products and the growth products that need to be supported, or the market of the whole category market will have a larger increase in the coming year, or the enterprises will have a larger proportion of the spanmission budget, the enterprises can also raise the budget proportion as appropriate, and generally adjust to 1.5 times ~2 times of the regular budget, that is, 5%~10%.

Sales forecasts for the coming year are not difficult for sales managers in the market.

When formulating a communication budget, the data of the total dissemination budget can be obtained directly from the chief financial officer or the highest decision maker. However, it is not an easy task to decompose this huge spanmission cost to every category, every brand product, every communication item, and even refine it by region and month.

Because the budget allocation must take into consideration the competition situation of every month, every month and every single product in the coming year, and it should be carried out under the principle of consolidating mature products, enhancing growth products and vigorously developing new products. Administration What kind of support ratio should be given to mature products, growing products and new products separately, and how should we classify the existing product categories of the enterprises into mature products, growing products and new products?

　 Allocation of budget by Boston matrix

　　 Administration It is necessary to introduce Boston matrix to cluster analysis of all products. First, Administration We must analyze the market growth rate of each category in the past two years (the proportion of sales this year is higher than last year), and then estimate the relative market share of each product (the ratio of the product to the largest competitor of its kind). With these two data as Boston matrix of horizontal axis and vertical axis, the products can be categorized into four intervals: thin dog products, problem products, star products and Taurus products. Administration According to the Boston matrix principle, we can eliminate the thin dog products, carefully develop the problem products, vigorously cultivate promising new products, continue to enhance the star products and consolidate the Taurus products.

However, the Boston matrix only summarizes all kinds of products and determines the supporting policy for a certain range of products. The drawback is that it does not solve the supporting proportion of products in the same interval. Even if two identical products are in the stage of star products, the support policies should be different because of different development conditions. At this point, Administration It is necessary to introduce a relative variable for the conversion of the budgetary proportion, that is, the ratio of market growth rate to relative market share and several relative values aggregated together, so that the specific support ratio of each development stage can be obtained.

The process is too digital, but when Marketing Administration When we develop to a certain extent and really go towards institutionalization and normalization, the use of numbers, models and a complex set of analytical tools will be inevitable. Administration If people do not have deep theoretical foundation and digital sensitivity, they will be able to communicate. budget Administration Work will be more and more uncontrollable.

A lot of people have misunderstood the work of communication. They think that it is enough to have a creative network and a resource network. These old and extensive ideas of communication have been imprisoned. enterprise Administration The way of thinking makes many enterprises' dissemination work like the spread of heaven and women, which looks like a flower of flowers. In fact, it has no direction. It does not take all the communication actions to the needs of the enterprises.

What really meets the needs of the enterprise's communication must be obtained through rigorous data analysis and fact deduction. A reality that we must face up to is that it is not enough to have a professional analytical method to survive in complex enterprises. Administration If a person wants to put his proposals into practice in the enterprise, he must have enough political skills to unite all forces that can be united and overcome resistance and hostile forces.

Implementation requirements for this process Administration In making budget, the first person must first get the approval and support of the highest decision maker, and then, in the specific implementation, he will drag in as many departments as possible to the budgeting process. For example, budgeting requires sales data, market growth rates and relative market share data for various categories of products. Administration You have to make budgets with all kinds of managers, for example, media cost estimates in the budget. Administration Those who are responsible for buying media will be involved. in short Administration It is the credit of everyone to integrate the budgeting of the integrated communications into the affairs of the people. Only when we unite the majority of the people can we have enough courage to deal with the malicious attacks of the few.

　 　 budget Administration We must have foresight.

Budget for integration and dissemination of all expenditures. Administration Of course, it is a good thing to improve enterprises. Finance Administration With the planned action of communication action and reducing operational risk, it is also helpful for all kinds of market personnel to clearly measure the dissemination support quantity of a brand product in any region and stage, and then launch market actions accordingly.

But from the day the budget is finalized, a new round of quarrels around the budget will start.

The plan will never catch up with the change. Administration Budgetary Administration We must not be rigid. We should make adjustments in the actual promotion process and grasp certain flexibility. Administration When the budget plan is set up at the beginning of the year, it is stated in the remarks column that the budget can be fine-tuning between different months, different regions and different products under the condition that the total budget of each category is unchanged, for example, the additional amount required by each category exceeds the total budget, and the cost should be reported separately.

At the same time, Administration An exemption clause should also be attached: "the budgetary expenses borne by the departments should be borne separately by the departments. budget Administration Departmental assessment and notification of the whole company. " The advantage of this clause is that Administration You can avoid bringing some irresponsible communication costs to yourself so as not to be dragged down by year-end Department assessments. Because there are always some departmental leaders who want to put some activities and media into consideration because of their personal relationship. budget Administration It is clear that the rules of the game should be clarified before the announcement, and that the results of the examination should be communicated to the whole company, which would naturally make some leaders who tried to play the role of favouritism fear.