How Much Should An Enterprise Software Company Spend On Product Marketing?
How much should an enterprise software company spend on Product Marketing as a percentage of revenues? (not including MarCom or Lead-gen costs) Is there an industry standard metric?
The answer to your question depends on what you would include in product marketing. Typically, program budgets are allocated to a separate group such as marketing communications. The only costs assigned to product marketing per se would be personnel-related expenses such as salary, overhead, and travel. I suspect this is true for your company too since you specifically ask us to exclude "marcom and lead gen activities."
The costs of this group would therefore not be tied to revenue, but to the number of people the company needs to develop effective strategies for market analysis and the resulting work around targeting, segmentation, messaging, and program mix. This decision has much more to do with product and market maturity plus competitive landscape than revenue.
For further details on the salary costs and number of marketing people typically assigned to a product, please see our annual product management survey (Annual Product Management Survey).
Answered by Adele Revella


