IT'S risky cutting things with your eyes shut.
You wouldn't cut your hair with your eyes closed would you? So don't blindly cut your sales and marketing budget, do yourself a favour and read this article first. It's written by experts in integrated sales and marketing.
It's not what you spend, it's the way that you spend it!
I know I'm not the only one who has heard the words "the budgets must be cut" over the last nine months. With the economy seemingly in free-fall, confidence in spending fails and businesses, just like consumers, start acting scared. This is, of course, understandable - it's scary out there. However, this does not make it right. If you or your boss are on a mission to cut your marketing and sales budgets STOP NOW and read this article.
Too often, people fail to understand the basic truth of marketing - if you don't talk, no one will hear you. It has been shown time and again that companies who maintain or even ramp up their marketing and sales during a recession do better than those who cut it.
Stephen Chelioti, Chief Executive at the Centre for Brand Analysis and Chariman of the Superbrands Council explained in Upload Magazine: "There is a tendency to see marketing as something to do when times are good, but it is even more important to push your company forward right now. Your customers need to know what differentiates you from the competition so you must tell them.
"Studies of the last six recessions have demonstrated that companies that do not cut back their advertising budgets achieve greater increases in profit than companies that do cut back. Analyse previous campaigns to see which of them have brought in custom. This way you can replicate a winning formula."
This is great advice. Re-use your successful strategies and plans, save money on the set-up and creative and reduce the risk, while maintaining a presence with your targets.
Joseph V. Tripodi, chief marketing and commercial officer of Coca Cola puts it plainly when he says: "Don't go to the ledge. Don't let the urgent overwhelm the important,” adding: It's very easy now to panic, and we cannot panic. Invest in your brands now, especially in these dry times. The easiest thing is to shut down, and that's the worst thing."
Marketing, communications and sales are more than just part of my company's culture, they are its product. Being so close gives me a huge advantage in that I see strategies tested every day. We have seen what good marketing can do during a downturn and we continue to see examples of companies pushing boldly on and succeeding where their competitors fail.
When so many companies retrench and reduce activity, the ones who don't or who increase activity can take advantage of a whole range of new opportunities. Consumers, whether b2b or b2c still want to believe they will continue to be heard by the brands in which they have already invested. So the brands who stick by their customers through thick and thin are the ones who will see the biggest and best long term returns.
"It's incredibly important to be risk-takers in the economic climate we're in," said Michael Mendenhall, senior vice president and chief marketing officer at Hewlett-Packard, adding: “In economic times like these, you don't hunker down and go in the bunker," he added.
Recently, in The Sunday Times, I was pleased to see Mark Clare of Barret Homes confirming that marketing is a vital part of how his company is surviving the huge effect of the downturn. The paper reported that: "He's fighting the slump with heavy marketing, bigger discounts and a determined strategy…". Mr Clare comments: "The visibility out there is not good. We are driving as hard as we can, stepping up part-exchange, marketing, and investment in the sales team. That has worked previously and enabled us to outperform others.” see the full story here … http://business.timesonline.co.uk/tol/business/movers_and_shakers/articl...
So what happens if you have no choice? You may be thinking: “That's all very well and I agree that pushing on with marketing is best practice but I need to reduce costs and increase income”.
Can I suggest you think SMART. This process allows you to make decisions from a position of knowledge and authority. No panic, no reaction, just a proactive method of analysis.
S - Strategise M - Maintain market spend A - Assess and allocate the budget R - Research your customer thoroughly T - Target and reach out to them
Remember, it's not what you spend but rather how you spend it.
Finally, planning is often the simplest and most effective way to reduce costs without affecting the return from your spend. People often claim they plan but in reality this simple measure rarely gets the attention it deserves.
Work out what you can invest in marketing and sales - be prepared to stick to your guns for at least one quarter. Next, create an integrated strategy to the agreed budget. Unless you really know all the angles, ask for professional help. Ask to see an agency's examples of campaigns that show good evidence of multi-channel integrated marketing and sales. Single service or specialist agencies will find it hard to offer the same returns that are possible through the shared experience of an integrated agency. Just moving from multiple suppliers to the right agency partner will save you time and money AND will deliver a far better ROI.
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