What do Marketing Dollars mean in an Economic Recession?

Like many of you, I’m sure I have spent way too much time of recent looking over my budgets with a big red pen striking out anything that might be dragging us down. For business owners in times like these, “trimming the fat” is priority number one. Unfortunately, marketing is often seen as the gristle on the steak. But before you start chopping your marketing budget consider the possible consequences.

With a reduced marketing budget can your company effectively announce its presence to potential customers and stay fresh in the mind of those who currently buy your products or services? Effective marketing defines and reaches your target audience, differentiates your company from the competition, and attracts potential clients (giving your company the opportunity to convert them into loyal customers). Without marketing, a company grows stagnant—with a warehouse full of products and ever-present production costs.

So, assuming that I’ve convinced you not to abandon marketing altogether, you may be asking: what sort of marketing should I do? First of all, times of economic recession are no time to get experimental. Go “lean” with your marketing and stick to what’s worked. In addition, focus on high-impact communication. Especially for small businesses, a focus on mere brand exposure may not be cost justified in today’s market. Consider highly targeted email, direct mail, and pay-per-click where every move is carefully calculated.