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Pemasaran Digital Malaysia
Creating a budget for marketing is essential for all business especially for SMEs, which ensures their continuous business growth in the market or the industry.

Over the years, we have seen so many marketing tactics put up by organizations of different sizes. Naturally, larger corporations have a bigger budget for marketing their products or services. Medium sized and small businesses may allocate their marketing budget differently than larger organizations. For better or worse, every business must include a budget for marketing to ensure the business will sustain in the long run.


Generally, Malaysian entrepreneurs belong to the SMEs. There are three categories of SME in Malaysia. They are defined by the sales turnover or number of full-time employees. It also differs between manufacturing and services sector.
SME definition

For entrepreneurs, business is mainly about closing the deal and making sales and of course increasing revenues. But, when the business has quite the competition, entrepreneurs scramble to increase their sales via promotions and discounts or risk losing customers.

Whether you like it or not, marketing plays a big role in sustaining the business. Marketing is in fact a method of creating awareness of your business and its brand yo your potential customers. Promoting is the specific attraction created to obtain the attention of your customer.


Sad but true, there is no right budget amount that fits all business sizes. But, as a general rule, a business owner would need to allocate 7-8% of its revenue towards marketing activities. For a SME, this may seem significant, but if you know how to use it wisely, it will work in your favor. Then again, allocation for marketing heavily relies on the business size, growth stage and the industry. When it comes to marketing, business owners are concerned with that return on investment to ensure that every ringgit is worth.

For a  budding business, a marketing budget could be as much as 20%. Largely, brand building and awareness will make up the most activities in the marketing budget. As for businesses in the sustaining phase, the budget for marketing may only be 5-7%, yet it depends on how heated is the competition in your market or the industry.


Speaking of making every ringgit worthwhile, return on investment (ROI) can be daunting. Prior to implementing marketing activities, you would need to understand an effective ratio for your ROI. Experts say, an effective ratio is 5:1. This simply means for every RM 1.00 invested, you would expect a return of RM 5.00.

If you are tracking numbers that convert into ringgits, it is pretty easy. But if you are in the brand building phase and awareness, your ROI could be a little different. Hence, every business may approach the subject differently. 

As a business owner that knows the innerworks of the business, you would also know what your customers want. By leveraging on your customers’ feedback, you could tailor your marketing activities to reach out effectively to your potential audience. Thus, part of your marketing activity should necessitate customer feedback. Their feedback is precious data in helping your improve your overall business operations. It can also help your allocate the appropriate budget for marketing you’ve always desired. But, keep in mind that your desires and the marketing budget should be realistic to limit wastage.


All business owners desire to get the best outcome from their marketing investments. Here’s an example to get you started.
  1. Outline your marketing costs
  2.  Set a reasonable time frame to achieve it
  3. Track your ROI
  4. Measure it using Google Analytics
  5. Include several creative ideas that match your brand image
  6. Pick a niche target to focus and measure performance
These are some of the general practices to help you get started with whatever marketing budget you have allocated.


Should you need creative assistance with your marketing strategies, DDEC should be your go-to. Our designers and brand experts may help direct your marketing efforts, as effective as it needs to be. Visit www. for more information and don’t forget to follow our social media channels ddecmalaysia at Facebook, Instagram and Youtube.

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