The recession touches all businesses, from sole proprietors to large corporations. In addition to downsizing, advertising and marketing budgets usually find themselves on the chopping block. Why is it that everyone, from CEOs to small business owners, seems to be in agreement that scaling back on expenses during this recession means cutting advertising and marketing? Typically, when business owners review their expenses with the purpose of reducing them to help keep the business afloat during hard times, money spent on marketing and advertising is often deemed irresponsible and is quickly cut from the budget. Marketing and advertising, however, are vital to a business remaining successful, especially during a recession. Here are a few budgeting tips for smart marketing during a recession.
- You Need Customers to Maintain Your Business – Without customers to purchase your product or service, your business will ultimately fail. People still make purchases during a recession; they are just more careful what they spend their money on. Although advertising your business is no guarantee it will succeed, if you want them to spend their money at your business and you have a valuable product or service to sell, marketing is the only way potential customers will learn about your business. Once you have some satisfied customers, remember that marketing plus word of mouth advertising will help increase your business.
- No Advertising Means No Customers – Remember that budgeting for marketing and advertising is essential for getting the word out about your business and attracting customers. Although keeping current customers happy and returning is important, don’t think that you can stay afloat during a recession relying on this group alone or counting on the fact that they will advertise for you. Cutting your marketing and advertising budget to rely on your customers to give you free promotion is much riskier than advertising to a large group of potential customers. You need new customers throughout the recession and beyond in order to have a successful business.