News:
An
Adverse Economic Marketplace Calls for Sound Marketing Endeavors:
During an economic downturn, the one of the first knee-jerk
reactions of most businesses is to cut the advertising and marketing
budgets. The rationale being that because of the recession, the client
must be less interested in your product or service because their business
is slow. However, with this being the case, it is important to note
that the advertising and marketing budget should not be cut, but rather
restructured to more closely fit the new economic climate. Focus should
be placed on your highest profit centers, which generally means renewed
emphasis on the 20/80 rule; marketing toward the
20-percent of your clients that do 80-percent of your business. In addition,
prospecting new business should be at the forefront of any marketing
and advertising endeavor during hard economic times.
When cutting budgets,
it’s best to use a knife, not an axe. The purpose of the budget
cut is to trim the fat off of the sales process, not to cut the whole
process out all together. For instance, instead of cutting the advertising
budget, which increases awareness of your product or service, find other
areas from which to cut where dollars are not as important. Oren Harari,
consultant for The Tom Peters Group, recommends that businesses should
specifically look for options that:
• Involve duplication of activities.
• Cause people to wait or rework.
• Don’t directly contribute to your strategic priorities.
