“How much should you be spending on marketing?” It’s a question I have been asked many times over the years. In the EMC world, supplier companies are typically small to mid-sized businesses ($5 million to $50 million USD), privately owned, and run by folks who have come up through the technology and engineering ranks, more so than the sales/ marketing/ business ranks. And since the EMC industry is not large enough to publish industry-wide data, this is a real question for many business owners and managers. The answer, for the EMC suppliers with whom I’ve worked, ranges between 2.5% and 7% of sales. Obviously, that is a wide range, but here are my observations on the effects of the different-sized budgets (without naming any names):1. In some cases, where we see EMC labs, filter companies, or test equipment companies that are run primarily by “technologists,” there can be a misguided belief that if they “build a better mousetrap,” customers will beat a path to their door, and therefore marketing is perceived as superfluous. In these cases, marketing investments tend to be smaller, unplanned and inconsistent. (I hasten to add here there are also many EMC engineers who are also very smart marketers!)2. By comparison, where we see supplier companies that are run by a balance of technologists + business managers, then sustained marketing plays a bigger role, budgets are planned and typically larger. And here is the crunch: Not only do these companies tend to be bigger than their competitors, but they also have steadier growth and survive economic downturns more easily. I have seen it repeatedly.So what should you be spending? Well, I must give you the lawyer’s answer of “It depends!” But a good starting point should be around 5% of sales. If you want some evidence for my 5% figure, read the Business Week article at the end of this post. But to get more specific to the EMC world, I’m publishing today a poll of what EMC suppliers are spending on marketing, and how they are spending it. I invite you to participate (anonymously of course) and also to share in the results next month.EMC Suppliers: 2011 Marketing PollThis is an opportunity for you to find out what are some of the norms are in the EMC industry, including how those marketing dollars are being spent currently – on Web-based marketing, social media, e-mail media, search, etc. Take 5 minutes to participate. Data will be collected anonymously to protect your company identity, and results will only be shared in aggregate, in my next post. 
Click on the Resources below to get more information: 1. Business Week, “What Should You Spend on Advertising? February 10, 2009. 2. Would you like to find out how well the latest Interference Technology readership matches your target customers? Click here to receive a free Custom Market Analysis for your business.
Share in This 2011 Industry Poll of EMC Marketing
