It is logical to reduce your marketing spending in such an uncertain economic climate. However, the long-term costs of that decision will be greater than the immediate benefits.
Your business depends on the success rate of your marketing. It’s what powers your company. In other words no sales, no business.
Cutting down your marketing budget with the reasoning that your customers wouldn’t be spending because of the poor economy does make sense. Although, the companies that didn’t decrease their marketing budgets are the ones that wind up recovering after the recession.
Reducing your marketing negatively impacts your sales and revenue by lowering brand recognition and visibility.
Marketing is what brings money to your door. Your marketing strategy will determine everything else in your company. Surely, if you’re going to cut costs, they should come from somewhere else in your business right?
Building a brand and selling it consistently is necessary for consistent sales. Therefore engage in marketing to maintain the longevity and successful operation of your company.
Your competitors will likely reduce their marketing expenditures, giving you more room to strengthen your brand voice in the market. Your profitability rises and so does your market share, enabling you to remain on top of your consumer’s minds.
When you stop promoting your business, after six months the brand’s usage falls by 13%. This has disastrous effects, when you stop engaging and interacting with your customers, you’re less in touch with their needs and lose the ability to read the market. You risk being forgotten and it will take some time before you can resume where you left off when the economy improves.
Businesses that expanded their advertising budgets during the financial crisis have shown that doing so is essential for succeeding after the crisis.
Focus on attracting customers during these trying times, they are probably wondering if you are still in operations. Offering highly targeted content that validates their current experience not only helps maintain the relationship but also assures them that the product/service they love so much is still there for them. This will for sure help with your recovery process when the economy gets back up.