The question “How much marketing budget do I need?" can be answered in two ways: top-down from revenue (industry average as a percentage of revenue) or bottom-up from the goal (what does it cost to achieve the desired growth?). The two routes produce different figures — and the value lies precisely in comparing them.
Top-down rules of thumb by industry range from 1–3 % of revenue (classic mid-sized companies, established brands) to 8–15 % (growth phase, new products, B2C consumer goods). Those well below the industry average are giving away market share — those well above it should review efficiency.
Bottom-up means: which measures do I need for my specific goal? How many leads, at what cost per lead, with what conversion? Comparing the top-down framework with the bottom-up plan produces the honest discussion about what really needs to be funded.