Many organizations look to cutting marketing budgets when they are trying to save money. Are they crazy? I would say so! I think it was Henry Ford who once said, “The person who stops marketing to save money is like the person who stops a clock to save time.” It is ridiculous.
I know there are parts of Canada presently in dire straits—the Atlantic Provinces, Saskatchewan, and Alberta are all hurting badly from the oil situation. And the rest of the country will soon feel the pain. As the layoffs continue in those regions, there are supply chain impacts. But what happens so often when we get into recession or close to it? Brands and businesses cut costs. And where do they start?—with their PR, marketing, and advertising budgets. Retailers cut back on radio buys or online marketing. Business to business organizations cut back on brand building and positioning campaigns. They think this will help them control costs. In my opinion, all it will do is create a spiral effect for future failure.
The bear market periods and “tough times” are when to maintain or increase marketing. It is a prime opportunity for sponsorship investment. As your competition retreats from the marketplace by cutting their marketing budgets, you can continue to stay top of mind and position yourself. Now is the time to build brand and educate, so that when the market comes back, you are ahead of the pack. What is more, consumers still buy during periods like this. Money still transfers. Your “top of mind brand” during these times wins the business as consumers see and hear about you—and fail to hear from your competition.
Here is a great piece on why it is important to continue marketing during these times.
As we move forward, think about your organization’s future. Determine where you want to stand today and in the future—at the head of the pack or the bottom of the choice list. Ensure that your budgets are sustained or grown during this time, not cut back.
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