Know-How Exchange : Advertising/PR

There's actually a MarketingProfs seminar on this topic, including an informal survey of the folks who attended. You might want to check that out. In a nutshell, most companies are cutting their marketing budgets, and they're shifting spending from traditional media to online media.

Info on the seminar is here:

Marketing in an Economic Meltdown

I find that my clients initial knee-jerk reaction is to scale back on their advertising when it should be the opposite. They need to keep them going, better yet, increase a bit. I've been advising my clients to diversify their advertisements. For example: rather than all print advertising, they need ad other marketing vehicles to their mix such as Social Media Marketing, Internet Marketing, adding Public Relations, Article Marketing and finding Joint Ventures to help them promote their products or services.

Great question, thanks for asking!
Ann-

The loss of short-term revenue (and potential long-term as well) causes immediate belt-tightening, and marketing is quick to be affected for most companies. The companies that are the exception are those that have studied (and continue to do so) the ROI of each of their marketing efforts and messages. The crisis is just another market condition variable for them in their ongoing ROI feedback study.

Being a guerrilla marketing coach, I don't push my clients into traditional advertising to start with. I advocate low or no cost methods of outreach-- a message that is most appropriate in these times.

There is only so much money in the pot. If sales drop there is less to spend. You have to empathize with them, but not synpathise, or they will not act. But too many marginal performers have been ranting about economy to blame their woes when other reasons are to blame. Its an excuse not a reason. I did an article on choosing the right R word, Recession or Resiliency. I teach my clients to find the niche that is profitable, and market lazar sharp to that group. If you have the right, current message your clients will respond. If you have the same message you've been saying for years, they will resist and rightfully so.

Sell Well and Prosper tm

When companies cut back, marketing usually gets the ax. Companies that understand the value of marketing continue to utilize their strategies even if scaled back. Companies continuing to market are more visible in this type of economy and it can work to your advantage to build awareness and generate leads. An integrated marketing plan utilizing advertising (print/online) as well as public relations and social media efforts can continue to generate awareness at a lower cost. Local marketers can introduce customer loyalty programs and referral rewards programs to build their businesses through current customers.

Jenni Hilton

I just saw a survey over at B2B Online today that showed (quoted from the article):

"The online survey of 211 b-to-b marketing professionals was conducted in November. It found that 31.1% of marketers plan to boost their marketing budgets next year, while 43.5% plan to keep budgets flat. About one-quarter plan to decrease their marketing budgets next year.

"Significantly, of those planning increases, one-quarter intend to raise them by more than 20%, and nearly 9% plan increases between 15% and 19%."

The BtoBOnline study found that marketers will focus on web marketing, with 66.5% of marketers planning to increase their online spending. The reasons are pretty straight forward - online costs less than traditional media and delivers trackable results.

(You can see the survey's summary at: https://www.btobonline.com/apps/pbcs.dll/article?AID=/20081208/FREE/8120899...)


These results are similar to research by Marketing Profs (https://www.marketingprofs.com/store/product/16/Benchmark+Research+on+Marke...)
which noted that 16-26% of firms are looking to reallocate their marketing budgets among alternatives. The big winner stands to be Web Marketing.

Some great posts here today.

Thank you all for the insights :))

I agree with Carol, There is far too much doom and gloom mongering in the main stream press but our online sales continue to grow and we are planning new campaigns new product launches and continuos expansion.

Maybe we will not grow next year as much as hoped but we will continue to grow.

Tell your customer that cutting marketing budgets is a bad idea in a down turn economy. Just really focus on how and where the budget is utilised, cut out all the aft and tell the customer it is better to trim margins than to trim marketing.

When the economy recovers, you will have bought yourself a whole lot of brand loyalty and awareness and will have payed lower advertising rates fro it when others were running for cover.

Cash in now on the cheaper placement rates and build your brand. Show the end user that you are stable solid and resilient in a crisis and they will stick with you.

Good luck