Often, as a knee-jerk reaction many companies have reduced their marketing during the current economic downturn. We have experienced this first hand with our clients, some of whom have cut their marketing spend to virtually nothing in an attempt to save costs and therefore improve their bottom line.
However, research indicates that cutting back on marketing makes the effects of an economic downturn worse. As stated in a recent article in the Journal of Strategic Marketing " Analysis of existing research shows that marketing can be more important to a firm during a recession than at any other time. Those who cut marketing expenditure are likely to endanger future sales and profitability."
Marketing is an investment in your business and should not be viewed as as optional extra. When done well marketing adds value, increases sales and improves profitability.
A recession provides an opportunity to improve competitive advantage through enhanced marketing efforts. Perhaps now is the perfect opportunity to try something different, try something new.
The worst thing to do is nothing. Yes, you may see an immediate improvement in cutting your costs but can you be sure that this won't have a detrimental effect on your future sales and profitability? Is it worth the risk?
We certainly don't think so.