Small Business Advice: Economy is down, what next? Don’t run the scissors on your marketing budget; apply the scissors on the campaigns.
Small Business Marketing Ideas: Economy is down,
what next? Don’t run the scissors on your marketing budget; apply the scissors on the campaigns.
With slowing economy and dipping sales, small businesses are feeling the heat more than the bigger ones.
And what happens when the largest job creating segment in any country start facing the scenario? Well, the answer to that depends on each company and the management.
However, here’s something that should not be done: a cut in the marketing budget.
Sales Dip but Demand Does Not
And here’s a pretty good reason why: the inherent truth in a recession is that the demand does not decrease; sales may but demand does not. Decrease is demand happens mainly because people no longer want to buy your product or service; economy has got very little to do with it.
What this means is that as a small business owner / marketer the key is to ensure customer loyalty remains high and strong. Doesn’t matter if times are tough, and sales plunge. Never stop conversation with your most loyal, and hence, most profitable, customers.
First thing to do...
So what’s the best way to cope with this situation? What usually happens is, money is spent on marketing, and everyone waits for the results. Its time to remember the old marketing quote “half the marketing is wasted, the problem is which half” and try to figure out as much as possible about the half that is being wasted and take remedial measures about the same.
Track and analyze your marketing investment and is which one is the good one, and which one needs to be scrapped. Start by devoting some time in tracking and quantifying the return for each marketing dollar spent. Try to drill down with good business metrics.
Take recession approach to your messages
Invest your marketing dollars wisely though. Be mindful of the message. Eliminate the dreamy honey filled messages you have been using in good times. Keep the messages in the context of time and environment. You want the message to resonate with the consumers, not get them angry.
More reasons not to cut costs
The other reason for holding the reins on cutting marketing costs is that cutting ad spending robs the long term equity of the brand. It is unwise in business sense to cut down on expenditures that contribute directly to the top line or bottom line growth of the company.
You lose exposure and that exposure is devoured by your competitor, who is talking to your market, advertising to them, and keeping himself on top of their minds. He knows he will reap rich benefits once the recession ends and the demands increase.
Plus there is always a chance of a bargain in a recession. If your competitors are reducing their spending, that means you can negotiate better rates with your marketing efforts. Recession is a good time to find marketing opportunities that a less-cluttered environment.
