Note: Big Question # 1: What is marketing lives at this link.
Here's the problem. The amount of money you can spend on marketing can be anywhere between zero and infinity. The Net is full of stories about the artist who does great business based on just an email newsletter and a basic website. It is equally full of the large, aggressive and expensive moves that some feel like they have to do in order to stand out.
So decisions about whether to spend money and how much to spend are some of the most complicated marketing questions. Having said that here is a bit of guidance:
1. You have many assets, money is just one of them. One of my favorite posts is on assets and marketing. Smart arts marketing uses money (maybe a little, maybe a lot) to get the most out of their other assets. Say, for example, an dance company feels like an asset they have is that their dancers are warm and friendly people. Maybe the best use of your marketing money would be to convince some dancers to interact with people after every show and pay them to do it.
This is a vital point for you to get. 98% of the artists and arts organizations in the world don't have enough money to "create" a particular feeling, they only have enough to leverage what is already there. So before you start thinking about money, consider what the money is supposed to leverage.
2. There is an inverse relationship between the time you have to market and the money you have to do the marketing with.
3. Free marketing often isn't enough. Details on points 2 and 3 are in this blog post.
4. I also have a few brief thoughts on when you should start and stop marketing in this post.
5. Another key element to determining how much money to spend is figuring out how much money you have coming in. So this post on setting financial expectations could he helpful.
Hope it helps.