The forecast for this year’s economic climate appears somewhat precarious. Indeed, during times of economic downturn, businesses often face the challenge of how to handle their marketing budget. Whether to reduce spending, increase it, or preserve the status quo, all options have their respective risks and rewards.
During a recession, marketing spend is often one of the first areas businesses cut. But it’s important to realize that especially during challenging economic times, marketing can prove an invaluable tool for businesses. It can help them stay competitive, keep their customers informed about any updates to their products and services, and proactively garner interest from new prospects.
The key is to understand the pivotal role that marketing can play in helping a business survive during a recession. This involves implementing tactical initiatives with appropriate tracking mechanisms to gauge the relative return on investment.
That said, many companies may have no choice but to trim down their marketing team when forced to make tough cashflow calls. In this case, a more cost-effective option can involve engaging an external marketing team – whereby companies can get more proverbial bang for their buck. Unlike an individual employee, an external marketing team brings multiple core competencies to the table to augment a company’s internal resources, at a fraction of the cost.
Companies need to focus on strategies that will keep their customers engaged. This means investing in targeted campaigns, digital marketing tools, social media, and other endeavors such as sponsorships, that will help them reach their desired revenue goals during this challenging period. Doing so can increase the probability of remaining competitive during tough times and coming out stronger when the economy recovers – and we all look forward to that!