When Do You Cut Your Marketing Budget?
When should you cut your marketing budget? I think when times are good, too good and you can’t keep up. When the orders are piling in, you can coast for a little while. In planning media it’s called a hiatus. Three weeks on, one week off.
That’s very different than slashing your marketing budget when things are looking uncertain. By marketing during uncertainty, your keeping your business on the path upward. By cutting the marketing budget, you steer your business away from growth and maybe even downward in a spiral.
Are you responsible for the sales and marketing results for your business? What’s your technique for sustaining your business during uncertain times?
October 8th, 2008 at 10:48 am
This is definitely a common topic amongst small business owners in light of the current economic situation. Under no circumstances should anyone cut marketing. However, marketing on a shoestring budget is possible. It requires more work and creativity but the results can be effective.
October 8th, 2008 at 4:39 pm
Pink Heels:
You’re so right. There are always alternatives. And if you’re doing measurements, you may find that the lower cost alternative decreases your overall cost per sale. And that’s a good thing, right?
Thanks for jumping in!
Chris
October 9th, 2008 at 6:16 pm
Chris, thanks for the interesting question, and an opportunity to weigh in:-).
We do sales and marketing a bit differently here in that we use word of mouth only to market. However, I like to think that marketing is more about the way a product can genuinely prosper a client - and that incentive should not change in tough times. In fact, the clients should even be more at the center then, since they too are likely feeling the tighter purse strings:-) Great post Chris!
October 14th, 2008 at 6:41 am
Ellen:
I think that Word of Mouth is the backbone of a referral program and should not be discounted as a powerful marketing technique.
Thanks for adding to the conversation!
Chris
October 15th, 2008 at 2:57 pm
I would recommend a cut in the marketing budget when your competitors are doing little or no marketing activities.You have to be really careful about creating awareness for the category you are playing in while your competitors sit back harness the benefits of the awareness you are creating while riding on your back.
If you are poineer in the category watch it or else your brand name can be commoditised.