Do Not Cut Your Budget: Marketing in a Volatile Economy

Depositing money in a piggy bank

 

Staying afloat in a volatile economy is a problem faced by countless businesses today. With budgets being cut drastically due to increased costs, advertising and marketing seem to take the brunt of the blow. According to The Guardian, overall marketing spending has been cut by almost 15% in the last few years alone. Due to the instability and uncertainty of a volatile economy, experts are unable to predict exactly how this will improve/worsen in the future.

Increase your advertising instead of cutting it

Despite the overall opinion, the importance of marketing during an unsteady period might increase instead of decrease. Ash Sobhe writes that “a McGraw-Hill research study of over 600 businesses showed that during the early 1980’s recession, businesses that increased their ad spending had, by 1985, witnessed a 256% growth in sales over companies that had cut back on advertising.”

A widely held belief during hard times is that if a business can hold onto the customers it has, instead of trying to find new ones, it should survive. This couldn’t be further from the truth.

What businesses tend to forget during a recession, is that their customers are suffering as well and are looking for ways to cut their own budgets. If your business falls under the group of expenses that they find unnecessary or irrelevant right now, then you might lose them as clients for the time being.

Increasing your marketing to try and gain new clients is therefore important to make up for the possible loss of clientele.

Change your approach to advertising

Roy Osing advises that instead of cutting your marketing, try to change it to suit the market.

One example is to work with other related companies to offer customers deals that include more than just one service. Osing uses “A Romantic Night” as an example. Instead of only advertising a restaurant, this package integrates different services like babysitting, transport, meals and much more. This way, each company involved gets great publicity without having a customer pay for each individual service.

Just because everyone seems to be cutting their advertising budgets doesn’t mean you have to. Rather take the risk of spending the same amount or even more on marketing during difficult times and you might just reap incredible benefits once those times are over.

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