Managing Your Marketing Budget During a Recession
Knowing when to spend and when to cut backs
There’s no hiding from the fact that we’re currently living in an uncertain financial climate. Don’t worry, this isn’t one of those “scaremongering” articles that leave you feeling defeated after the first paragraph. Quite the opposite, actually. But, if we’re being honest with ourselves, we can all admit that changes do need to be made during a financial crisis if we want to protect the businesses that we’ve worked so hard to build.
In the face of this, many businesses will be in the process of reviewing their annual budget in order to find ways to make some necessary cuts; Their aim being to minimise their outgoings as one way to increase their overall revenue. A wise decision, I’m sure. But, whilst this is a sensible approach to managing a recession and ensuring your business stays afloat throughout, you also want to ensure that the cuts you make are rightfully placed as you navigate a new budget spend across the board.
We’ve all heard of the popular phrase “spend money to make money”. And, whilst yes, this common saying can be overused (and even more commonly misinterpreted – all too often leading to unnecessary spending with this particular phrase as a justification) it doesn’t change the undeniable truth that this statement holds. For example, if you invest in a course to upskill, that is money well spent that will lead to more opportunities for you to make more money in the future. Basically, this applies to anything that you invest in that will see a financial gain in return.
Keeping this in mind, as the title suggests, I’m here to share with you the one budget you shouldn’t be cutting during a recession – your marketing budget.
I know, marketing can be an expensive tool on your “success belt”, but if you want your business to thrive, not simply survive, during the recession then maintaining a comfortable marketing budget is going to be the key to achieving that, and here’s why:
Exposure
No matter what sector you’re in, being as visible as possible to your audience keeps you at the forefront of their mind. Giving your business as much exposure as possible during a recession ensures that your already existing clients or customers know where to find you when they’re looking for your services. Don’t forget that, they too will be looking to make spending cut-backs, so having a reminder of your presence will keep them engaged ready for when they need you.
New Audiences
Not only does marketing exposure maintain your current client base, it also opens opportunities for new clientele too. Competition in any line of business can be exceedingly difficult to manage, but, by maintaining a strong marketing budget, you’re giving your business the best chance of being found by the people you’re trying to target – new customers.
Communication
By maintaining a strong marketing budget, it allows you to communicate to your audience through powerful copy and strong assets. Even when your marketing isn’t promoting a specific product or service, keeping a high level of communication throughout a recession reminds your audience of what you’re about and, more importantly, that in spite of the recession, your business is proving to be a safe and reliable place to invest their time and money.
A recession is never easy to navigate, whether for our businesses, or for us as individuals. However, in my time, I’ve seen both ends of the spectrum – watching some businesses sadly fade in the face of economic crisis, and witnessing other businesses thrive when faced with the uncertainty that a recession holds. If you want to experience the latter for yourself, your outcome will be determined by the decisions you make now. Marketing is one of the most powerful tools that you have in your business arsenal, and there’s no better way to get noticed than by investing in a marketing campaign that’ll leave a lasting impression on your potential customers.
