Browsing the archives for the down economy tag.

Never cut the marketing budget

Business economy, Marketing, Online marketing

I just have to say this. Today’s economy brings some struggles many didn’t anticipate. But one of the things that causes me great concern for some businesses is the reduction to the company’s budget across the board.

Obviously as revenues drop in this fear-based economy, it makes sense to look at the corporate expenses more closely.  Maybe the company institutes a hiring freeze. Perhaps business travel can be replaced or reduced by online meeting and webinar services such as GoToMeeting.com or FreeConferencing.com. Maybe those executive expense accounts can be looked at more closely. This all makes sense.

But what does not make sense is a reduction to the marketing and advertising budget. These expenditures are revenue-producing and not expenses that should ever be cut. In your industry you may have noticed that there are fewer players; you see fewer ads on TV and radio; and you can see less competition online from your competitors. This is perfect proof that maintaining or even increasing your marketing and advertising budget is the right, competitive move for this kind of economy.

When this economic cycle shifts — and all cycles come to an end and change into something else — if you have maintained or expanded your marketing efforts, your company will be on the top looking down at all those companies who cut back their marketing efforts and expenditures and now are having to catch up with you.

Chesa Keane
www.computergoddess.com

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