Due to the current COVID-19 pandemic, many businesses are searching for ways to cut marketing expenses as to not take too big of a financial hit. One of the first expenses that come to mind for many business owners is marketing.
The problem with cutting marketing expenses is that it becomes a bit of a chicken and egg problem. Which comes first – the revenue to spend on marketing, or does spending money on marketing bring in the revenue?
Saving On Marketing Expenses Doesn’t Increase Revenue
When you’re looking to save money, it might make sense to cut expenses. But you’re only able to cut so much.
What happens when you run out of expenses to cut? What happens when cutting expenses ends up working against you and causes a decrease in revenue? Efficiently using your funds on marketing expenses can improve profitability, even when you’re looking to save money.
There are plenty of marketing materials you could spend your money on that will lead to an increase in revenue.
Banners, displays, and signage all lead to customers being more likely to notice you. Many businesses are not operating right now. Having some sort of eye-catching signage will let potential customers know that you’re still operating and ready to serve them.
Promotional product spending is another expense that you think might be easy to cut without causing any negative effects. But that isn’t true. These products are a way for you to create a favorable impression and keep people thinking about your company throughout this pandemic. They are a great way to reach new customers and keep current customers coming back in a time when that couldn’t be more important.
This Is Your Chance To Stand Out
In a time when other businesses are closing up shop or cutting their marketing expenses, this is the perfect opportunity for your business to shine. There’s no doubt this is a slow time for most businesses but this means it’s a great time for you to increase your market share. You have the opportunity to push your company in front of potential customers who might not have been potential customers before the pandemic.
Advertising, business cards, or promotional products are all ways to get your name out there to anyone who might be looking for a certain business or service. If you were to decrease marketing expenses at this time you might be missing out on potential long-term customers.
A McGraw-Hill Research study analyzed 600 companies during the 1981-1982 recession. They found that companies that maintained or increased advertising had sales increase by 256% over companies that cut their advertising. All post-WWII recessions studied by the American Business Press has found that advertising aggressively during recessions increased sales and profits in the following years.
Better Deals For Your Marketing Expenses
Most companies are experiencing some sort of downturn during this pandemic. This includes marketing and advertising companies. Some companies are offering cheaper promotional products as well as coupons and deals that you wouldn’t be able to get normally. During this pandemic, you’re able to get more bang for your marketing buck.
Marketing Is Always Important
These are tough times for everyone. In order for your business to come out of this pandemic in a good position, you’re going to have to spend marketing dollars. Numerous studies show that businesses who spend more on marketing than their peers during recessions gain market share. This also increases profitability in the following years. It might be tempting to cut marketing, but it’s been shown that you will be shooting yourself in the foot.
This is a perfect time to get your brand in front of customers. Don’t pass it up by cutting your marketing and letting your competitors steal the spotlight.