Companies across all sectors are reassessing the playing field in which they are operating on a daily or weekly basis, battening down the hatches and cutting costs to the bone – it’s a case of survival for so many.
And, as with every recession, including those in the early 80’s and 90s and the global financial crisis of 2007-08, businesses are facing tough questions over what expenditure to axe and inevitably the spotlight falls on marketing.
Should businesses maintain their marketing spend, substantially reduce it, perhaps concentrate on just one area of activity, or cull it altogether in the short to medium term? Well there is not a definitive answer to this – it depends on the individual circumstances of each company and in which sector they operate in.
So, what should you take into consideration when looking at your marketing plans moving forward? Here are my top five suggestions:
1) Talk to your agencies and see if you need to change your focus of marketing activity and identify those areas of your business with the best chance of generating profitable income and get most ‘bang for your buck’. This means assessing which product lines have the most potential for profitable sales and those markets which have been hit least by the current economic situation. Look at the ROI across the various platforms you work with.
2) Make it a priority to check out what your competitors are doing on a regular basis by looking at their social media activity across such platforms as Twitter, Facebook, Instagram and Pinterest. Are there are any ideas that you could adapt and run with!
3) If you can maintain marketing activity, you could steal a march on your competitors. This could be an ideal time to build your company profile and standing in the marketplace, whilst some players may have significantly reduced spend, or stopped altogether.
4) Be pro-active – keep in touch with your customers, update your mailing lists and look to add value to your offering. Look to upsell at every opportunity.
5) If it is touch and go whether your business can survive the current recession, then look again at all expenditure: Can you buy more cost-effectively? Are there more efficient ways to run the business? Do you really need some products and services? Consider trying to renegotiate terms with your landlord – even if it’s just a short-term fix - or move to cheaper premises? Can you run your business from home and book meeting rooms as necessary, or keep in touch via such platforms as Zoom?
Responsible agencies will provide their clients with the best possible advice to meet their individual circumstances and, if a client is best served by cutting marketing spend significantly or altogether, will advise just that.
