Here’s why you shouldn’t cut your marketing budget

Marketing is often one of the first budgets on the hit list when businesses are looking to weather economic challenges. You would of course expect us to be bias, but with 25+ years’ experience working across startups and global brands, we know what it takes for sustained growth & profitability.

Here are several reasons why maintaining (or even increasing) your marketing efforts WILL be beneficial:

Long-Term Growth

Executed in the right way, marketing WILL ALWAYS be a positive investment in your long-term success. If you reduce drastically, you will find it harder to get back to the same heights as before. Especially when competitors have encroached on your market share. We always like to use the Jumbo Jet analogy by mapping flight altitude against new business enquiries.

If you’re cruising at 35,000 feet and suddenly turn off the engines (marketing investment), the plane will not nosedive. It will gradually reduce altitude (enquiries). The phone will still ring tomorrow, and the week/month after, because of the brand equity you have built to date. But if you get too close to the ground, it will take a hefty amount of fuel (investment) to get back up to your optimum cruising altitude. And that’s assuming you were not flying low already…or your competition haven’t come in to clean up while you retract.

Staying Front of Mind

You need to buy a new shovel for the garden. Where does your brain immediately turn to? Is it the big orange shed with white letters? Why is that?

The right brand activity keeps your brand in the minds of prospects. With a gazillion messages to digest daily, it’s very easy for customers to forget who you are. For some industries, you won’t know when a customer will need your service, so by not being front of mind, you disappear from view and don’t even make the consideration list.

Customer Acquisition

Depending on your provision, economic challenges can often present a wave of new markets. Look at the pandemic, whilst many businesses struggled, many thrived by pivoting their model. You might need to upsell or cross sell to your existing database, and that needs marketing investment.

Build Assurance

When consumers see a business maintaining its presence and communicating effectively during tough times, it often strengthens and enhances credibility and trust. Especially important if competitors’ voices are quieter than normal.

Cost-Effective Channels

As demand in the advertising market decreases, most media owners have the same level of radio airtime or OOH (posters/billboards) inventory to fill. Advertising costs will normally decrease providing an opportunity to negotiate better rates and/or better bang for your buck.

Competitive Advantage

Maintaining a consistent level of marketing will often have a net positive effect as your competition retracts.

Marketing is an INVESTMENT in future sales, NEVER a cost.

If you’re reviewing your 2024 marketing plans and would like some professional advice on what investment dials to turn up or down, drop us a line at info@attractandengage.co.uk.or talk to us on our socials