This year when out and about in our hometown of Las Vegas, my husband and I marvel at how crowded and busy the places we frequent are. From the Strip to local restaurants and at outdoor shopping centers and sporting events, the Entertainment Capital of the World is booming. We look at each other and exclaim, “What recession?”
Yet, we know that inflation and interest rates are steadily increasing, layoffs have occurred, and employee bonus dollars have not been paid. And when the economy is in a downturn, marketing spending historically also decreases. Yet, this could also be a time to work smarter to stand out and capture market share.
Bye-Bye Marketing Dollars?
A recent article in Entrepreneur posed the question about pulling back marketing spend during an unsteady economy. Adam Bornstein, the author, responded with what I think is a compelling argument not to decrease marketing efforts during a downturn. An excerpt follows:
If your goal is sustaining momentum—which means doubling down on your most loyal customers and winning new ones—why would you assume marketing is the place to cut?
Bornstein goes on to say, “Successful marketing depends on many factors. Some of it you control, like the messaging, creative, and good targeting. Other parts you don't, like saturation of the marketplace, how much your competitors are spending, and your customer’s mindset.
But when recessions or downturns hit, the uncontrollable variables can work in your favor, because: most businesses cut back on marketing, and many businesses increase their prices. Consider the downstream effects of both. When others cut back on marketing, there's less competition—making it easier to get more attention.”
Cutting the Budget Vs. Working Smarter
Need some ideas to make your marketing dollars stretch in the face of an economic downturn? Here is some food for thought:
Overjoyed Outsourcing: Some clients I support use my team instead of hiring a full-time marketing team or to enhance a more junior marketing team. This saves on the cost of a full-time employee, including salary and benefits.
Invoice Intelligence: Instead of paying a marketing agency a monthly retainer, consider an hourly rate agreement for strategic projects.
Colorful Connections: To save on printing costs, work with a partner who has relationships with wholesale trade printers.
New Knowhow: Take a small percentage of the marketing budget (5%-10%) and try something new. You never know—it could be the infusion that your marketing plan needs!
Spellbinding Strategy: Leverage this economic season to revisit your brand and communication strategy internally. Then use this opportunity to amplify your brand story on a less-crowded playing field.
If my team of talented web developers, graphic designers, content creators, and I can be helpful in making the most of your marketing, please reach out today. In uncertain times, we can work within your budget to keep critical components in your marketing strategy at the forefront of your communications, helping you get ahead of the uncertainty with a marketing plan in place.