The Marketing Mistake:
Cutting marketing investments when business is down.
Marketing is muscle, not fat to be cut out as an extra expense. Without marketing you will lose credibility in the market, your audiences will forget you and sales efforts will not be supported.
When sales are shrinking and everything you see and read is about economic woes, job loss and the credit crunch, your first reaction may be to cut back spending. Marketing and advertising are often the first to go, yet history has proven this is the wrong move. In fact, companies that continue to invest, or even accelerate their investments during an economic downturn, increase sales and capture a larger market share.
McGraw-Hill Research analyzed 600 companies covering 16 different SIC industries from 1980 through 1985 in a study of U.S. recessions. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn’t keep up their advertising. One major advertiser summed it up best:
“When times are good, you should advertise. When times are bad, you must advertise.”
Advertising is just one piece of a solid marketing program that will keep your organization moving forward in tough times and excelling in good times. Being consistently visible in your market and presenting messages that are compelling to the audiences you seek to reach will keep your organization moving forward.