Marketing Budget in Slow Economy

[MRusso]

In a downward economy, how do you budget for marketing? Is it best to be conservative and careful with spending or is now a good time to pave a path for success when the economy starts picking up?

Are there good marketing deals now or are rates the same?

[Ugly Duck Marketing]

Ugly Duck Marketing said:

The answer to both of these questions is yes. Be conservative but stay the course.

As Cope pointed out, a struggling economy can be a great opportunity to establish and solidify your brand to come out on top when the struggle is over. The biggest mistake a company can make is pulling ad dollars and crossing their fingers in hopes that everything will be alright when the smoke clears. Advertising is not a luxury-it should be considered a normal cost just like paying the pg&e or phone bill. Do, however, be careful with your spending by taking a look at your current marketing plan. Examine, reevaluate and streamline it...ask a professional. Any marketing dollars found to be wasteful should be transferred to a more appropriate advertising medium or vehicle, not pulled from the budget.

Another important thing to remember is that marketing is not just advertising. Let's all go back in time to our college text books and try to remember the 4 p's of marketing-Product, placement, pricing, promotion (I think that's right). Ask yourself these types of questions: Is my current vendor giving me the best deal out there? Is my sales staff well-trained and knowledgeable? Are my sale offers enticing enough to lure the customer? Am I utilizing co-op dollars? What can I do to make my entire operation run more efficiently?

[Brandon]

Like Ugly Duck Marketing points out focusing your marketing in a struggling economy is the best way to go. Focus on the customers most likely to buy your product instead of mass marketing your services to customers. Re-evaluating your marketing plan is an ongoing process that is never complete.

[MRusso]

I agree with everyone's comments about solidifying a customer base and targeting your marketing. I just wonder for businesses that may not have the means to hire an agency, how do they learn how to target their marketing?

[Tracey Rosenberg]

Amen to being the maverick and advertising when everyone else has pulled back. . .YOU will be the one they go to for pizza, or for a new shirt, or for insurance, not the guy who says, "I can't afford to advertise."

Whenever I hear these words, it drives me nuts and I get out my favorite story, "WHY IS THAT?":
A man wakes up after sleeping under an ADVERTISED blanket, on an ADVERTISED mattress. He pulls off his ADVERTISED pajamas and bathes in his ADVERTISED shower. He brushes his teeth with an ADVERTISED toothpaste and shaves with an ADVERTISED razor, all after washing with ADVERTISED soap. He then puts on ADVERTISED clothes and drinks a cup of ADVERTISED coffee, after which he drives to work in an ADVERTISED car and then. . .
He refuses to ADVERTISE believing that it doesn't pay! Later, when his business is poor, he'll ADVERTISE to sell it!
Why is that?

[Guerrilla Design + Advertising]

Tracey-

That is my all time favorite quote and adequetly describes the world we live in, even during economic down-turns! You can have the greatest product or service, but if you've pulled back on your marketing and your target market is not aware of your business, things will only get worse. Guerrilla Design + Advertising takes the approach of creating a design revolution that comes from our youthful, energetic, and experienced staff. Being visible through innovative ideas is critical to creating and maintaining brand awareness. If you don't have the means to hire a marketing company, do your research! The biggest mistake is now knowing who your customer is and how you can best fulfil their needs.
www.gdadvertising.com

[Ana]

I have been asking myself this question for a long time. Thank you everyone.

[Ollie Danner]

All good points on whether or not to be conservative in a slow economy. Well, I think it really depends on your goals. Of course, I'm a little biased since my company does Search Engine Optimization, which is just a fancy way of saying, we'll get on page of Google. And, here is the real kicker, in most cases, this lasts a very long time...sorry TV, radio and print. Drop us a line and we'll show you how it works. www.page1listings.com

[Carol and Michael Adkisson]

Being conservative in this poor performing economy is definitely a good choice. The only thing that you need to be concerned about however is your connection with your target audience. It is important to keep your brand name out in front of the public even if you change your advertising venue to something inexpensive yet still effective. Bakersfield's Little Paper can do just that for most small businesses.