Should I cut my marketing budget in an economic downturn?
01/11/2011
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We all know that things are hard and that our economy is in a downturn. We know that spending cuts are just around the corner. We also know that the average consumer is being more careful with their money. However, even in a downturn, one thing that consumers continue doing is consume.
Often when things get tough, the marketing budget is the first thing to be cut; for many it seems like a logical step. However, there is a train of thought that says this is the fundamental reason for business failure. We at Senna Marketing also share this view; for it is our opinion that marketing should not be cut back, but it is a time to get smarter on every single pound spent on marketing activity.
The key to this is to look at your marketing budget as an investment as opposed to an expense. Like all investments, it’s about investing in the right people and right products to give a return. At Senna Marketing, we urge all business people that we come in contact with each day to use the recession as an opportunity to take stock, use the knowledge that they have of their customers and focus on ways of unlocking each area of potential. We recommend a simple 5 step plan known as SMART:
S – Strategise
M – Maintain market spend
A – Allocate budget
R – Research and understand your customers
T – Target them and offer them what they need and want
Consumer purchase decisions are not only driven by value, but also confidence. Consumers need to be sure that what they are buying will fulfil and exceed their expectations. Whether we care to admit it or not, statistically we are more likely to buy from a brand that we recognise from the television, newspaper or Internet as opposed to one we have never heard of. If a business chooses to cut back on marketing spend thus limiting brand exposure, very rapidly it becomes a case of “out of sight, out of mind”. Before you know it, demand tumbles and the financial issues snowball downhill and out of control.
At Senna Marketing, we understand that the recession can be hard for both business and consumers; but we also understand the power of targeted, results driven marketing. Contact us today for a fresh outlook on your business marketing potential and how we can help you engage with your customers. Call us on +44 (0)1603 619660.
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