By Michael Simpson
It always amazes me when I have to work hard to market marketing to so many potential clients that believe they should be cutting back on marketing and advertising because of the tough times. Too often, marketing is seen as inessential, wasteful and, worse, unnecessary. In an ideal world, marketing activity would be self supporting, always pay back ten-times what it costs to execute, and be effective in reaching every potential buyer in the appropriate sector all the time. But reality is, marketing activities are driven by several factors, including perceptions of the company, economic forces that drive consumer behavior, and other factors beyond your control.
Time and again, businesses who have defined marketing as wasteful fail to grasp the importance of this essential business function. Because of mediocre marketing efforts that produce little results, they often focus on the cost side of the equation – advertising costs, web site development costs, print collateral costs, etc. They see a marketing budget as a target for cutting costs, and it could mean that they have to make a choice between preserving jobs or marketing. The economy has made all of us work with a smaller pot, and tough decisions have become excruciating. After all, how could you justify spending limited resources on a new campaign when the cost of the campaign includes letting go a valued employee?
Every business plan involves getting customers to pay for a good or service. If you’re unwilling or unable to put forth the resources to achieve this goal, your company may simply cease to exist…Maybe not in the short-term as existing clients can sustain a company for some time, but when the economy recovers, your company may have lost any competitive advantage and market share it worked so hard to acquire or your brand may lose traction all together. Cutting the marketing budget only reduces the opportunities available to build the brand and boost product awareness and memorability in the mind of the consumer, and will reduce market share and profitability in the long run.
Few brands are strong enough to survive without advertising, product promotion and customer service support. Brands are like delicate houseplants - they need attention, support, bolstering, and polishing or they will wither and shrivel to a shadow of their former self. This is not a position you want your corporate brand to be in when the growth engine for the economy accelerates. Many studies conducted by prestigious business publications and university think tanks have come to the same conclusion based on the data they gathered on U.S. companies:
“Those that reduce their presence in their key service markets are in a far worse position in terms of profitability, market share and market competitive presence when the downturn eases and profitability growth returns than those that maintain their marketing activity levels. Those companies that are so bold as to increase marketing activity stand a great chance of taking market share from their less aggressive competitors and can rule the category if the downturn lasts long enough.“
Downgrading the quality of your marketing campaigns and materials.
This mindset will actually cost you both in the short- and long-term. You might save a very small incremental amount on cheaper paper, shorter, smaller brochures, cheaper handouts, smaller trade show giveaways - but the damage you’re doing to your brand and the resulting poor reflection on the company as a whole does far more damage than can ever be repaired by spending those few dollars later to try and fix it. Not to mention shaking the confidence of your customers by giving them a visual representation of how poorly your company is performing! “Gee, they must be in trouble, this looks like cheap junk. Maybe I’d better take my business to the other company that’s likely to be around to support their products down the line,” is the thought you’re promoting by reducing quality in your publicly released materials.
When times get tough, I believe we need to ramp up marketing, providing the market with visual evidence of your corporate strength, your brand leadership, your resilience in the tough market, and the supportive strength you offer for your products and services. Now is the time to not slash your marketing budget or reduce the quality of your materials. Everything you do today will reflect on the health of your company, and cutting here shows the most and helps the least.
Michael Simpson, Director of Marketing and Creative Services for XMARketing (www.xmar.net) has been consulting with businesses for over 15 years. Focused on the needs of small to mid-sized businesses, Michaels specialties include brand strategy, marketing strategy, brand development, marketing efficiency, long-term brand strategy and internet marketing. Michael can be reached at (847) 707– 3507 or msimp@xmar.net .



