If your business revenue has been hit this year due to political instability, rising inflation, or new taxes, your recovery plan will likely include a reduction in the marketing budget. There is no debating that basic operational costs, such as production, rent, and salaries, should be prioritized in order to keep a business running. However, ceasing all marketing efforts can do more harm than good. By not understanding metrics or seeing ROI clearly, businesses may not identify the opportunities created by marketing, prompting quick and cumbersome decisions that will have long-term negative effects on the business. .
Studies have consistently shown that businesses that sell through tough times are more likely to survive than those that don’t because consumers can be better reached in a less crowded environment. What businesses should do during these times is rework their business and marketing strategies and make smart decisions, instead of cutting budgets. Here, and in no particular order, are some steps brands can take, once they’ve also shared their own thinking.
1. Reduce your budget rather than cutting it
Engaging your audience should remain your number one priority. The question is to identify which medium will give you the highest return on investment, and you may want to consider shifting attention away from television and into other media such as digital, activation or public relations, to support your efforts during difficult financial times. Staying competitive and commercially relevant should come first. It’s all about reallocating your marketing budget to avenues and content without cutting back on current plans.
2. Allocate funds to new channels
If there is no choice but to make budget cuts, make sure it is the right kind of cuts; those that will not backfire or compromise future gains. Instead of cutting marketing costs, how about redistributing them from overused, low ROI channels to underused, high potential channels? Like, for example, online partnerships or alliances. A crisis is the perfect time to reevaluate your marketing strategy and determine not only how to cut costs, but also on which platforms and channels your business has yet to make its mark. You may, for example, find that while a legacy channel underperforms during a recession, a new platform has a better, more relevant user base that could help you reach customers for a fraction of the cost. . Sometimes bumping up your budget and allocating funds to new channels can be a great way to optimize your budget and increase your ROI without having to cut it.
3. Send positive messages to consumers
Consumers are as stressed as your business in times of economic crisis, and campaigns based on human contact can help connect better and deeper with consumers in a more authentic way.
4. Content is the new king of marketing
You are a wealth of knowledge when it comes to your industry and your brand. Invest in digital content that helps customers make informed buying decisions by leveraging your knowledge and presenting it as well-packaged, digestible video content. This speeds up your sales process and ensures that you continue to attract customers. Upload a video containing all of your sales and brand ambassador pitches, product information, tutorials, and any other information you think people might need to know about your business. Now is a good time to do this, as people search more during tough times. However, you need to hire experts to create this content so that it is engaging and watchable.
5. Pay attention to consumer promotions
During tough times, consumers are more likely to be bargain-hunting, so take the opportunity to adjust your advertising message by offering short-term pricing, freebies and deals, price incentives, and show that you you care about your consumers and their budget. constraints. Decades ago, promotions were a key marketing tool, but they have lost their effectiveness. However, digital promotions and offers work well. Smart promotions can be developed for every brand and every financial model; all it takes is smart, focused thinking.
To conclude, cataract is a wonderful way to approach budget cuts. We all know that this tasty dish consists of chopped and sliced pieces of chicken, beef, liver, brains and many other ingredients. Marketing is a challenge and great marketers will rise to any branding challenge and always find a way forward, no matter the budget. All you have to do is prepare great marketing cataract that matches your brand and serve it to your consumers to keep them connected and continuously delight them.
Good food no matter what budget you’re playing with!
Shoaib Qureshy is Group Managing Director of Bulls Eye DDB. email@example.com