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Marketing in Challenging Times
Whatever you do, don't stop now. Marketing, that is.
It looks like we're in for a bouncy economic ride. Analysts differ on whether a recession
looms or has already arrived and on whether it will be short or long, shallow or deep.
Pretty much everyone thinks there's a problem. If you're old enough to remember 1987,
or even 2001, you're probably clear on that yourself.
Keep Marketing Going to Keep Revenues Coming
When organizations face budgetary pressures, it's not unusual for big pieces of the marketing budget to quickly end up on the cutting room floor. That's a bad idea.Marketing is an investment that produces bottom line returns. Reducing spending on marketing during an economic downturn is a one-two punch to those returns.
In a down economy, a given amount of investment may produce less return than in more positive times. If you reduce your marketing budget, the combined result of lower "unit productivity" and less spending can be a nasty hole in your bottom line.
Good Marketing Is Free
Good marketing should be getting you at least a dollar in sales for every dollar you spend on marketing. To do that, your print and interactive marketing materials must have the messaging, voicing and look to achieve market impact. If your marketing investment is not producing better than even returns, this is an excellent time to revisit how you are spending your marketing dollars.When you are getting a dollar for dollar return or better, your marketing is "free." In this situation, increased marketing investment goes straight to an improved bottom line. So why would you reduce your marketing when the economy turns challenging?