‘What is zero-based budgeting? And what are its benefits for marketers?’ – Econsultancy

Ben Davis says, “Ashley Friedlein has recognised the importance of focus for marketers in 2017.

His trends essay for the year predicts the rationalisation of brand portfolios, supplier relationships and media partners. Focus, Ashley determines, can also be found with zero-based budgeting.

He writes that this is a way to “revisit a brand’s purpose, promise, positioning and audience. Again, to ensure clarity of focus.”

So, what is zero-based budgeting?

Zero-based budgeting; a definition

The base of the marketing budget is zero. That means that each year, the CMO is not given any money (aside from certain operating costs) unless they can justify why they need it.

Where many organisations simply allocate the same marketing budget each year (as an arbitrary percentage of projected sales volume), with anything extra having to be justified, those using a zero-based budget go back to the drawing board entirely”.

What is zero-based budgeting? And what are its benefits for marketers?

Econsultancy