cutting back marketing in bad times?

[debaron]

hie guys,

Just wondering what you thoughts are during these bad times? Are you noticing massive cut downs in marketing/advertising budgets on your company?
Do you agree that marketing will be the first department to get chopped during bad economic times?
OR
Do you think it's the time when companies tries harder to market themselves?

Cheers
Deb

[HWT]

We are only starting a computer business next year - the only thing we've spent so far is on advertising. $800 worth in total for the year.

[gerryonline]

Im not sure whether or not marketing will be the first to go, it really depends on how much value the company sees in its marketing department.

If you are in marketing, maybe you should focus your attention on how valuable a good marketing campaign can be.?

[jacylnong]

yeah, marketing is the first to go. my company provides the cheapest way of advertising and still, we notice a 50% drop of sales recently.

[jacylnong]

ops* advertising i mean and well marketing budget is the one to get decreased.

However, what companies fail to realize is that they should stop pampering their marketing departments and provide them with big huge budgets for their marketing strategies.

Only a real and good marketer would know how to market a product at the utmost impact at the lowest of price or at no price at all. And this is what companies fail to realize.

[Hugh Thyer]

Exactly. During these times when its harder to get customers its even MORE important to be doing whatever you can to get them.

Those companies that see marketing as an expense, rather than an investment will be the first ones to go bust.

Of course, there are ways to market better for less money.

[axeray]

Those companies that see marketing as an expense, rather than an investment will be the first ones to go bust.

If you look at all of the down markets in the past, where a lot of businesses went bust, you'll see some startups, who marketed well during these times, who grew exponentially and dominated the market when the good times returned.

[justinsigns]

We have seen a downturn from our customers marketing, since we produce short term promotional material - posters, stands etc.

It has affected the bottom line, but from putting in a new machine and marketing that a little it has compensated for the loss, the benefits of this machine far outway the financial costs involved.

Fingers crossed our clients pick up towards the end of the year!

[The Profit Frog]

It's an interesting question, and after a quick scan of the responses I wonder if there is some confusion over the distinction between advertising and marketing.
No doubt you're all familiar with the terms, and I hope I might share my own view in case it helps those who may not be quite so conversant with the generally understood distinctions.

Advertising is the way in which a business lets the market place know of its goods or services.
Marketing is the entire process set up to enable a sale to take place - marketing is more complex - it includes such things as price point, unique selling proposition, distribution, and of course, advertising.
Marketing creates the buying environment (a great definition I read somewhere).

So, in responding to the question about cutting back on marketing, my view would be...
"No!!!! Don't cut back!!! Just do it smarter!"

I offer Small Business owners great ways to market their businesses that won't increase their advertising expenditure (on things like radio and TV ads, newspaper and YP ads, or other expensive methods that are not clearly targeted).

There are many smart ways to spend less on advertising and still experience a boost to your profits.
If I can help, let me know.


Terri
Response Copywriting