It’s been said that during an economic downturn, such as a recession, that makes for the best time to start a business. The logic behind that belief is that should the business survive then it means it has identified a real need which needs to be serviced, because even in the toughest of economic environments, that business manages to generate sales. What you’ll often find though is that during tough economic times like a recession, lots more businesses tend to spend more on marketing
This can be very misleading to someone who might be starting out or someone who is running a small-to-medium enterprise, because you can very quickly blow through your marketing budget and then even start eating into that portion of your business’s budget which is reserved for other aspects of the business. Don’t be fooled – the biggest corporations only appear to be spending more on marketing because they have a nice financial cushion to fall back on, which allows them to take the suggested hits. They can afford to operate at a loss for a certain period of time and so they often make full use of the opportunity to gain more visibility when the competition cuts back in one of the first areas any business cuts back on during the tough times – marketing and advertising.
So how do you go about saving on your marketing costs? We explore this from the point of view of it being in a scenario where there’s an economic downturn to have to navigate, simply because that’s probably when your ability to make every marketing cent spent work has the most impact. This is when the decisions you make are crucial and perhaps even critical to the survival of your business, so it’s all about real effectiveness.
Focus on existing clients
Some of your clients who have previously bought products or services from you inherently demonstrated an ability to make the purchase and to specifically buy from you, based on their need of what you’re offering, so it really won’t hurt to target your limited marketing budget to them, in trying to land repeat sales.
Pursue the hottest leads first
If you’re going to be pursuing new leads which you might have previously spent money generating, go for the hottest leads first. It sounds obvious, but before you know it, when it comes to following up on leads you often realise a bit too late that you’ve expended resources chasing dead-ends.
Going digital might even be a marketing route to take which can be instituted as a primary practice instead of only doing so when the marketing budget is tight. If you’re in the business of design then it’s perhaps a lot easier to go digital with your catalogues and showcases in a bid to save the costs that would otherwise arise from creating a physical catalogue of your product offering, such as displaying what a wedding postcard design would look like created from a save the date template, online or even with the use of a video.