The economic downturn is an elephant in the room. It squeezes everyone in a tiny little corner with a pretentious smile that says “I’m going to be ok.” And when you look at the books, you get a bigger picture of where your business is going.
During an economic downturn, the first item on the management task list is to cut down on cost.
You look across the room; thinking who among your staff should start packing their bags and leave. You review benefits and incentive agendas and contemplate what you can cut down.
Marketing in an economic downturn
One of the typical cut backs is likely to be in your marketing budget. But did you know that once you cut your marketing budget, you end up spending more before the end of the year?
Let’s say we represent your budget goals with an example. Assuming $1 spent on marketing yields $100 revenue. Imagine how much revenue you lose when you cut $20,000 from your marketing budget? – $20M, Does it make sense to go down this pat
The companies we’ve seen so far have always ended up spending more on tactical campaigns. They do this to catch up. They end up spending more anyways. A lot of the times way more than they cut in the first place.
How do you eat the elephant? You need a plan.
Strategy is key; which means you need not cut down on your marketing budget.
Instead, you build better strategy. This would include finding the right people to work with. You also need to learn to maximise your current assets and stretch them as much as possible.
You can start by looking for your internal team. Bring them together and find key people who can influence a change in mindset for the company as a whole. Leverage them to rally the troops and change your game.
And if you don’t have your team to work with it’s time to get out of your comfort zone. Look for an agency that suits your budget and is able to come up with ideas without having to feed them yourself. Look for an agency that is leveraging the downturn. BAM!
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