Though a marketing budget might make you think of the money allocated for shopping at the local market, it's really about something else entirely. Businesses that need to reach and connect with their customers must create a marketing and advertising budget each year to do so. The budget funds the company's marketing efforts, which could include print, television or radio advertising or promotional events and materials. As with all budgets, marketing budgets are typically finalized before the company's fiscal year begins. The amount of money allocated to the marketing department depends on factors that range from the company's size to its position in its market and the profits it generates.

Employee Costs

The head of the marketing department is usually responsible for creating, proposing and managing the budget each year. Separate line items in the budget might include marketing research, establishing brand awareness and packaging materials for new products, among other things. The employee salaries of those who work in the department represent a significant proportion of the budget, such as managers, analysts and support personnel, which also includes their compensation, bonuses and benefits.

Marketing Projects

The projects funded in the budget might include surveys and focus groups under marketing research or these might fall under brand awareness, especially when rolling out a new product. Sometimes, brand or advertising covers these items if a brand or advertising manager requested the marketing research surveys. Other projects typically included in a marketing budget include new product research, competition analysis and industry research.

Operational Costs

Unless office supply costs are covered under another line item in the company's overall budget, the marketing department might also include these items in its budget. This area of the budget might also include computers and printers, copiers, fax machines and shredders. Other marketing department equipment include might include purchases for computer-connected projectors for slideshow presentations or video equipment for reviewing advertising spots ahead of time.

Advertising and Promotion

A company's website and the costs to maintain it could also fall under the marketing arm as it is used to advertise and promote the business. Other advertising expenses could include direct mail campaigns, the costs for buying mailing lists, email marketing software services or online advertising banners or spots. Graphic design services, radio jingles and the costs of hiring outsourced ad agencies also fall under the domain of the marketing budget.