Don't Leave The Best Alone!

Mistake 8

Cutting marketing budget -marketing plan and marketing strategies e-marketing

Why cutting the Marketing Budget can kill your business.

We all do it right? Times get tough. Customers disappear to…well, I don’t know where. What’s the first thing we do? Right, kill the expenses we don’t need.

“Tighten our belts” might be the phrase. Well, that’s good. We should all look after the pennies – especially in an economic slowdown.

 But hold on. Cut the marketing spend? Is that such a good idea when times are tough? You may be surprised to learn it is one of the worse things you can do! Why? Simple. To stop marketing or another words, disappear from the consumers view, can amount to saying “We’ve stopped trading”. How on earth can you expect to attract new business to you if you stop marketing – at any time?!

I should mention here, I use the word ‘marketing’ for any activity that promotes or markets your business. It could be advertising, exhibitions, seminars, events, radio commercials, flyers, door knocking…whatever.

If you stop doing what you ‘normally’ do to attract business (provided that method works in the first instance of course) just to save the business some money, you are short changing yourself. How you going catch a fish if you don’t ‘leave your rod in the water’?

By leaving your rod in the water when all the other ‘anglers’ have given up, means all the fish are going head straight to your tempting bait thus giving you the best chance of a bite. Fact: In surveys, businesses that continued to market or even increase their marketing spend in a downturn improved their market share by as much as 70%!!!

Companies that cut or reduced their advertising spend saw a drop in sales as much as 64%. One such company was MacDonalds! And that’s not all. Business who cut their marketing revenue are far likely to struggle to recover lost business when the economy picks up but those businesses that kept their names ‘out there’ are already ahead and finding things a lot whole easier – and leaving you and your business in their wake.

I’m not suggesting for a minute you don’t look at ways of saving money for your business - of course you should - but there are so many other ways of doing that without it having a negative effect on your business. If you are not sure what they are, drop me a line.

I’d be happy to explain a few but do yourself a big favour and don’t ‘drop out of sight’ from your customers or potential customers by cutting off your marketing budget.

We’ve all heard the expression “When the going gets tough, the tough get going” and it is as true today as it ever was. Save money in the business elsewhere and bump up the marketing budget and see the difference. Let your competitors make that mistake.

Cutting marketing budget -marketing plan and marketing strategies e-marketing