“Stopping advertising to save money is like stopping your watch to save time.” – Henry Ford
In a global market where budgets are tight and every penny counts, why do we find ourselves cutting costs which ultimately impact our profitability? Customers are not buying as much, which means businesses must find a way to stay afloat. When cost exceeds revenue, sometimes your only option is to cut expenses. But why does it tend to be marketing and advertising that are first to walk the plank?
Without marketing, you will reduce your sales; without sales, you will limit your revenue, without revenue, your profit will take a hit. Get the picture? This short-term thinking may lead to brands falling on other hurdles along the way.
We need to think of the bigger picture.
Value propositions take time to establish themselves. Brand awareness takes time to create returns. Although direct-response marketing can often generate short-term results, most forms of marketing require longer-term investments in resources to gain results and rewards.
That’s why cutting your marketing funds might be the worst thing you can do, particularly if the foundation you have laid is about to pay off.
If you provide exceptional products or services, then helping people understand the benefits you provide and the difference you can make to their lives could be the one thing not worth sacrificing.
Promotional spend is the investment needed to reach new customers and to retain an existing customer base. Customers are at the essence of any business, so don’t think of your marketing as a non-essential overhead; that could be a damaging mistake. Without marketing investment, companies cannot hang on to their market position for long. They will keep losing existing customers, and increasingly struggle to secure new ones.
We need to get smart with our marketing solutions. Traditional marketing and advertising methods to engage with customers have evolved from mediums like print, billboards and promotional items. Now digital techniques such as website banners, a trial to a subscription service, CRM, social media marketing and direct marketing are leading the way. The delivery method may not be tangible, but that doesn’t mean there isn’t a return on investment.
At Big Picture, we believe small details make big ideas happen.