With no limit to the bad economic news lately, many companies are cutting back on their marketing budgets to conserve precious cash. The LinkedIn poll above says it all - 60% of companies are cutting back, and only 20% are increasing.
I understand the thinking: Consumers with less disposable income = less opportunity for my product/service = less return on investment of marketing dollars = cutting marketing budget. This thinking, while logical, is thinking on how not to lose - not thinking on how to win.
Now is the BEST time to increase your marketing budget.
1. All of your competitors are competitors are cutting back - so you can be even more potent with less money, sucking up remnant inventory online, radio, print, and TV.
2. Advertising and marketing firms are more flexible right now (including Fluidesign), so you can get a great deal on services that you couldn’t get in “normal” times.
3. You’ll stand out in consumer’s minds as a stable, strong company. If you can afford to market to them right now, you must be.
4. With the ROI of each dollar you spend much higher, you’ll position your company and its products/services to weather the storm and emerge in a much stronger position that your scared competitors.
Right now, most companies are playing to not lose. The best companies (and the ones that will survive) will increase their marketing budget, and play to win.
