Should we cut down on our marketing costs in this recession?

In these tough times, one of the first things management considers is cutting back on their marketing staffing, budgets and activities. When most of your competitors cut marketing entirely and go out of business, you have a good chance to stand high above the crowd. But the need is to change our business perspective towards marketing. Marketing is a long-term business investment; it only becomes a cost when not effective.

In these tough times, one of the first things management considers is cutting back on their marketing staffing, budgets and activities. When most of your competitors cut marketing entirely and go out of business, you have a good chance to stand high above the crowd. But the need is to change our business perspective towards marketing. Marketing is a long-term business investment; it only becomes a cost when not effective.

A study done by Penn State’s College of Business contradicts all the notions related with reduction of marketing costs. It reveals that during recession, businesses should actually increase their spending on building smart marketing strategies. There are many evidences in history to support this research. During the Great Depression, Procter & Gamble successfully pushed Ivory soap. Intel launched “Intel Inside” campaign during economic difficulty in the 1990 – 1991.

The dilemma begins when we equate marketing with advertising. Marketing involves everything that is needed to promote business. Without marketing, your customers can never realize about your existence, whereas advertising is only a small part of marketing. Marketing does not necessarily need a big budget; all that is required is a well-structured marketing strategy.

Web is a cost-effective marketing tool that can minimize your spending and help you reach goals. Marketing through newsletters, emails, social media are not cost-intensive activities but involve a great deal of creativity. Smart marketers are realizing that tough times mean being more digital and interactive so that you can track results and spend on things that work more.

Especially in this day and age of slowdown, when your competitors are almost non-existent, you can take a larger chunk of the pie home if you maintain relationship with your customers. Cut down in marketing investments may reduce your expenses but puts an end to your market share and sales too.