Tips to Marketing in a Recession - Part 1

Over the next several weeks CreativeXchange Marketing will provide tips on how to successfully market in a recession.

In a recession, many business owners feel the pinch and are quick to cut expenses.  What expenses should be cut?  Unfortunately, all too many times, a decision is made to cut back on marketing. (Sales staff, advertising, direct marketing, networking, etc.)
 
By cutting marketing, business owners could actually be missing new sales growth opportunities.  In an economic downturn there is a huge opportunity to invest in marketing to capture more market share, as your competition runs into trouble and makes the mistake of cutting back their marketing.  Your competitors may not have the foresight or the capital to make good marketing decisions.  By investing in effective marketing during an economic downturn, it puts your company in a better position when the economy rebounds.

Instead of making a decision to cut marketing, it would be better to re-evaluate your marketing plans to make sure they are most effective.  Knowing where to spend your marketing dollars and why, is critical in getting the best return on investment. This is where having an effective marketing plan is invaluable when times get tough. 
 
Whether you have a marketing plan or not, we would like to share some tips that can assist you in doing effective marketing in economic downturns. 

Tip #1:  Don't cut out marketing; Do spend marketing dollars more effectively.

Make sure every dollar you spend on marketing is needed.  Don’t just cut off all marketing, rather evaluate its impact.  Be sure you are tracking where your customers are coming from and record it into some kind of tracking system. 

Before venturing off to get a new brochure, website, sales flyer or purchasing an advertisement, ask the following questions:
 
What is the purpose of the marketing expense?  Is it really necessary, or is it just a cool idea you had, or a salesperson tried to sell you?

Will the marketing effort you are considering appeal to your target market, does the advertising vehicle reach your target market? Do you have a clear picture or profile of who your target market is?  Is the marketing expense promoting a segment of your business that is currently in demand?

What return on investment can you expect from this marketing expense?  How much new business must you get to break even on the expense?

Consult with a marketing strategist if you are unsure of your marketing needs, or what marketing will be effective.

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