Investing in marketing
Everywhere you turn these days you can hear or read about how businesses are spending less money and as a result attracting fewer customers. The question you have to ask yourself, and not just during the quieter times, is does your company see advertising as an expense or as an investment?
During economically strong times, many businesses tend to neglect their marketing programs as there is a glut of work available that they don’t have to work hard to secure. However, come a turn in the economy, and these same companies can struggle as they have not established a presence in the public eye, making it difficult to maintain a strong market presence.
A marketing strategy incorporating consistent professional branding and an effective online presence, enhanced with Search Engine Optimisation, will help attract potential clients to your business; and this is exactly what you want to focus on during quieter times.
We speak to a lot of people quoting the economic downturn as reason not to get a website or spend money on marketing, when we know that good branding and a good website can actually attract people who will potentially spend their money buying your goods or services.
We understand that the nature of marketing being an upfront expense can put people off; however if you don’t spend the money getting your company out in public view, whether during good or bad economic times, how do you expect to attract clients?
The economic downturn should not be an excuse to forget all about marketing; in actual fact it provides a great opportunity to:
1. Sustain your customer base;
2. Gain new customers; and
3. Get an edge on competitors who have cut their advertising during the recession period.
This window of opportunity is created by the understanding that advertising is an investment, not an expense.
As an article in WA Business News (Orlando, 26 Feb 2009) explains, “Research . . . showed that spending more on sales and marketing during a recession can lead to a bigger return on capital employed.”
And if you think there is no point advertising because people aren’t spending like they used to, think again. As people start curtailing their purchases during tough economic times, not less but more advertising is required to encourage spending, especially on your product or service.
“. . . research analysing 600 companies from 1980 to 1985 showed that companies that kept advertising during the 1980-82 recession experienced a 256 per cent increase in sales following the recession.” (Orlando, WA Business News, 26 Feb 2009)
Maintaining communications with customers is also vital, to ensure them of your stability and ongoing support. Small businesses especially need to communicate with their customers and suppliers, and make sure they understand what is happening in their marketplace. Many small businesses are well positioned to weather the economic crisis if they adhere to sound business practises and continue marketing and promotional work.
The experts agree: you need to continue marketing to existing and potential customers during the tough times; keep your business actively in the public eye so that when spending picks up again you can reap the rewards of good marketing.