Should You Cut Marketing Costs During A Recession?

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Should You Cut Marketing Costs During A Recession?

• Shutter Up Creative Designs

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Introduction

• Should you cut marketing costs during a
  recession? Most businesses reduce their marketing
  when times are tough. Businesses that maintain
  their marketing budgets while redistributing
  those funds to better reflect the current
  environment, on the other hand, outperform those
  that cut marketing expenditures, whether in
  product development, advertising, communication,
  or pricing.

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Studies That Prove Cost Cutting During Recession
Is Not a Good Idea

• In his 1924 Harvard Masters thesis, Roland Vaile
  divided 250 businesses into three groups those
  who did not believe in advertising, those who
  reduced advertising during the Depression, and
  those who increased advertising. Businesses that
  increased their advertising spending during a
  recession saw a 20 increase in comparable sales
  compared to those that did not advertise and a
  24 increase compared to those that reduced their
  advertising budgets after four years.
• Additionally, a  study in other parts of the
  world such as the UKs  shows that products
  introduced during a recession have a better
  chance of long-term survival and higher sales
  revenues.

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So, Whats The Solution?

• Companies must distinguish between the necessary
  and the wasteful when it comes to marketing
  budgets to maintain their brands strength. In
  other words, cutting costs without a plan can
  harm your companys market visibility, especially
  online. Changes in Googles algorithm or a lack
  of new content can cause your organic rankings to
  fall over time, decreasing organic traffic to
  your site. Paid channels, such as digital
  advertising, necessitate a consistent budget to
  keep advertisements visible in search results.
• Get rid of any outdated or unnecessary equipment
  that is complicating the lives of your employees.
  Subscriptions that arent being used to their
  full potential should also be reviewed.

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Final Words

• During the recession, determining your best
  course of action is challenging. Invest this time
  in reorganizing your budget to meet your
  companys needs and the desires of your customers
  but DO NOT CUT MARKETING. While it may be
  unavoidable to be more frugal, a well-coordinated
  team can maximize results while minimizing costs.
• It may be time to restructure and reevaluate but
  you must remember how important your branding and
  SEO efforts are!!!
• Always remember Marketing is considered an
  investment in your business, not just an expense.

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Thank you