Why you should never cut the marketing expenses when doing budget review
Growth of the company is needed at any stage of it`s development. Extremely important on the start, but not much less important in the later phases of the company’s life. Actually, companies that aren`t growing or responding to change and reinventing themselves eventually seize to exist. Of course at times growth is not possible, and at times just staying alive and continuing to do business is success that should be honored. Times like this one. Yet, every company knows that if costs exceed revenue, the only option left is to cut expenses: inventory, supplies, product development, fixed costs, variable costs.. Marketing.. Whooooooa…. Slow down a bit. Not marketing.
Why not marketing? Have you ever tried to cut down on marketing costs? Have you seen what happens then? I truly don`t advise you to cut those expenses. I have done it a few times, and I can tell you , you have never seen your business burning out so fast. Why? It`s simple. Cause marketing costs are the only costs that actually fuel sales, that is that actually fuel sales and income. Although it might appear to you that they are the easiest to cut fast, you can pause the campaign on facebook, or shutter email campaigns easier than cutting the rent costs or easier than reducing the fixed costs – electricity, maintenance etc.., it is not the smartest move at all.
Let`s get back to logic: without sales, you don’t have revenue and without revenue — especially if you’re funding your business with that revenue — you soon won’t have a business.
Yet, if you are forced into rationalizing activity you must note that there is a difference between throwing away money and efficient marketing. Customer acquisition makes sense if customers generate consistent long term revenue. You should draw the line at what cost do customer acquisition costs (CAC) works for your business.
Smart marketing is the oxygen for the company. It brings life to it. So if you are reviewing your budget, make sure you leave some room for marketing costs. The only way to remain profitable is to increase your sales, after all that is what brings in the money for the labour costs, the fixed costs and keeping things going.
You already know the answer -marketing is the magic tool that increases sales. So make sure you keep that river running.
It`s simply impossible to raise awareness, generate leads, land customers and build a brand without spending money on marketing. Referrals help, but the rest of the cake is made by that other pool of clients coming down swimming with that marketing river.
Effective marketing requires time and repetition
Even though it seems that the rule of 7 is outdated (meaning that each potential client needs to be exposed to an ad 7 times before they act), still frequency and repetition are important. Many potential clients will not come to you simply because they are not informed about the service or products you are offering, or they are not informed repetitively enough. They must see an ad, a promotion or a piece of content marketing so that they think of you and eventually decide to act upon resolving their need. Many will need to come back to that content a few times before they decide.
Value propositions take time to get established. Brand awareness also takes time. Marketing is a game for the long run. It requires longer-term investments in money and time to pay off. The short term campaign are just a spark from the fire you need to keep your company heated.
Oh yes, one more important checkpoint for those businesses that have done all the groundwork, withstand all the trouble and are just on the line to accelerate into the days that are collecting the pay off. Especially important point and crucial point where you should take the last days of that dark age and come to the light – do not pull back now by not undertaking the intensified marketing activities. The day has come to elevate, marketing is exactly what it does.
Why recession is the best time to invest in marketing?
Well market share is hard to come by. In fact when markets expand it’s very difficult to gain market share. If your industry is going through a downfall it might be the right time to increase marketing and take a bit more of that marketing share that has opened up to be free to gain. This has shown to be true in many studies.
Companies who increase their social media marketing and any other marketing spending during recession time enjoy greater gains in market share. It’s plain logic. The market is changing, opening up space for movement and it’s up to you to take it.
Your business must be taking care of business. Re-position and make sure you are responding to market needs and solving problems and then help people understand the benefits you provide and the difference you make in their lives – use the marketing solutions , choose the best ones, the most efficient ones and don`t step down, go where you are needed.
If you want to read more about the tools that you can invest in to boost your marketing and sales, follow this link: https://internationalmarketingagency.com/the-best-lead-generation-tools-for-2020/
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