Should you cut costs on marketing in tough times? Some companies do, but what are the consequences?
Times are tough!
In a tough time, a lot of companies are cutting their costs on marketing, Promotion costs can be high and the money could be spent on something more important, like saving your company in an economical crisis.
Even though it might make short-term sense to reduce marketing spending, the fact is, cutting cost on marketing won’t be profitable for your company. As a matter of fact, cutting on marketing activities will most likely lead to serious consequences:
#1: Fewer potential customers
The less you promote, the less people get knowledge about your product/ service and brand. In this case, there is no possibility to build a strong brand because nobody knows about your existence. This will attract less potential customers. Eventually, the sales will reduce and this causes a lot of (financial) issues. This was not the purpose, wasn’t it?
#2: Your competitors get an advantage
If you are not willing to satisfy your customers, the competitors do. Now, the competitors have the chance to take advantage of your position and ‘’steal’’ your customers by using smart marketing. When things improve financially, you will be left in the dark while they have all your customers.
#3: Loss of customer trust
A good marketing campaign builds trust. When companies decide to cut on their marketing costs, they automatically pay less attention to their customers. The customers won’t buy the trustworthy products anymore and the future sales might drastically decrease.
But what should I do?
It is still possible to create new marketing campaigns with a smaller marketing budget in an economically tough time. Marketing is not spending or wasting money, but an investment. Marketing people have a creative mind, right? Use that!
Switch to online marketing
A cheaper and still effective way to promote is online marketing. Online marketing is an easy way to measure, analyze and report results.
There are several ways to use online marketing:
- Social Media
- Email marketing
- Google Ads
Online Marketing Strategy
Today, it is hard to imagine a brand without a Facebook page. A lot of people decide to create a Facebook account because they think it’s free. Yes, a Facebook page could be very beneficial but it is definitely not for free. The most important online marketing channel is a website. Focus on this first, because this is the base of your online marketing campaign.
Spin Internet Media has a lot of experience with maintaining the online marketing of bigger and smaller companies. Now we see that the importance of online marketing is getting bigger and bigger.
Do you want some real advice about online marketing? Schedule a free 15 minute phone consultation now.