Posts Tagged ‘Budget Cuts’

As the Southern Nevada business community continues to feel the strains of a down economy, executives are faced with tough decisions concerning how to cut budgets. One item that is often cut is marketing. While these cuts may appear to have little impact and improve the firm’s bottom line, the inverse is actually true. In fact, cutting marketing budgets is a short-term fix that can have long-term implications on a company’s success.

According to a study by McGraw-Hill Research, companies that consistently advertise even during recessions perform better over the long-term. The study looked at 600 companies from 1980 to 1985. It found businesses that maintained or raised their level of advertising expenditures during the 1981 and 1982 recessions had significantly higher sales after the economy recovered. More specifically, companies that advertised aggressively during the recession had 256 percent higher sales revenue than those that discontinued advertising. A recent article on Forbes.com stated that companies that did not maintain a consistent presence during a past recession actually spent four to five times the amount it saved in marketing to regain its market status.

While budget cuts are necessary and it may be hard to justify large numbers allocated to marketing, it is important to remember that keeping the company’s name in front of customers is important. Public presence can lead to new business, and if you are not appearing, you are disappearing from the market – especially in the eyes of the consumer.

Instead of cutting budgets completely, executives should consider more cost-effective ways to reach audiences. The advertising and marketing industry has changed dramatically over the last five years. Companies are now using a mixture of marketing strategies to reach audiences including online marketing, grassroots outreach, co-branding opportunities and media relations.

One of the most cost-effective solutions is online marketing. With the emergence of digital media and social networks, it’s easier than ever to reach specific audiences directly. By using HTML e-mail campaigns, social media networks, online forums and blogs, and company Web sites, companies are able to post information instantly about new developments and correspond with customers in real time through the Internet. The cost associated with this communication medium is significantly lower than its predecessors, which often included fees to print and/or place collaterals piece or ads. One of the main benefits to online marketing is the ability to track the results through numerous online channels.

The Internet also allows companies the opportunity to participate in ongoing conversations about their industries. Over the last few years, the public relations sector of marketing has expanded to include online blogs and citizen journalists in addition to traditional media outlets. In many instances, companies can secure coverage for a news release or trend story ideas more quickly and with greater control of the initial content.

While it is important to explore new outlets for communicating to your audiences, an economic downturn can provide many opportunities to get more exposure in traditional outlets for less money. Publications are increasingly willing to negotiate on rates for placement advertising than they had been in recent years. Many publications are willing to give companies special pricing on long buys and offer deeply discounted prices on open space once the publication is laid out. Publishers would much rather fill the space at a discount than run the risk of leaving it empty.

In addition to price, companies who remain in the media strengthen their voice. With so many companies cutting budgets and pulling back their marketing efforts, those who remain enjoy more exposure. This is true both in print ad placement as well as media relations activities. With fewer and fewer ads appearing in publications, companies are going from one of many to one of few. Continuing to advertise gives them the opportunity to stand out.

Ad placement is not the only way companies are currently saving money. Printers, promotional vendors, graphic designers and even agencies are adjusting pricing to compete in today’s market.

Marketing during a down economy can be a very strategic business decision for any company. The key is to use an integrated approach that combines a variety of different communications disciplines. Companies should use this time to examine the way they are reaching out to their audiences and adjust accordingly. Maintaining a consistent and effective conversation with customers, especially in times like these, will lead to long-term growth and success for any company.

Kassi Belz, APR,
Director of Client Services,
MassMedia Corporate Communications
http://www.massmediacc.com/

Author: Kassi Belz
Article Source: EzineArticles.com
Digital economy, mobile technology

With the unemployment rates going up, market ratings going down, and an overall gloomy outlook for the next few months, every business needs to cut costs. We all need to ride out this economic storm and wait for those clearer skies beyond. Hence, the norm usually these days is that you need to fit a small budget for a big objective. Advertising for example is one of the key investments that may suffer some budget cuts but still has some big shoes to fill. So you need to know how to advertise your business even on a small budget. Do not worry; there are ways to do it. One of the ways to do this is by direct marketing, investing in print media like flier or brochure printing. Another way is by establishing good relationships with investors and clients by reasserting your competent image. This can be achieved by printing color business cards and company portfolios. To help you with these simple and cost effective advertising strategies, we have compiled these simple steps on how to advertise your business on a small budget.

1. The first thing you need to do is to once again relearn what your target market is all about. You may already have some of the initial research on your market a few months or years back. However, with the change of the economic climate, these studies may not be as accurate. So check again on the prevailing attitudes and trends of your market. You may discover that most people prioritize affordable products and services instead of luxury things today. Also, you may find out that most people do not travel too much these days, preferring to stay at home or just go to the closest commercial establishment for their needs. Note the new kinds of details such as these. This can prove valuable as you adjust your advertising strategies to these trends.

2. Now, armed with that information we go to the easiest and fastest way to advertise, and that is through your logo. In most cases you should have a logo already designed for your business. Also, in most cases, people already recognize it to the point that they almost ignore it by default. To revitalize your advertising through your logo, the simplest and most cost effective way is to change the logo design and make it fresher. Try to integrate what you have learned on the first step. See if you can project an image of “affordability” and stability as you redesign your logo. If done correctly, people should respond to this new image and approach your business more often.

3. Afterwards, you can improve your stature with the local market by investing in flier or brochure printing. As we have learned again on step one, people may not travel as far today. So you can focus on your local market as the base for your customers. Advertising for local markets usually involves some “hands on” promotions. Giving out fliers and color brochures are the easiest and cheapest ways to do this. They are not as expensive as radio and television advertising, and they have the ability for directly impacting your customers since the promotional materials are given right unto their hands. Of course, since the distribution is purely “hands on” you can target specific neighborhoods and demographics by distributing your print brochures in a few key locations.

4. Once you have your local market interested, it is time to re-establish some old business contacts, and try to open up new investment opportunities. You can do this easily by investing in yourself and your image. Have some new color business cards printed and then give them away again to old and new business contacts. Meet these people and establish a new and mutually beneficial business relationship. You might meet new investors, more affordable suppliers and potential customers just because you look new with your freshly printed color business cards.

5. Lastly, you can tap the Internet as a prime advertising tool. This is the cheapest and easiest to do in a slow economic environment. Since Internet marketing involves using just a computer, an Internet connection and a healthy imagination you do not need much capital to implement it. You can use electronic newsletters, banner advertisements, e-postcards, forum marketing, social networking and other Internet marketing techniques to reach people in this new and dynamic medium. It is easy to do, and the potential reach of advertising in this mode is worldwide.

Those are just a few easy steps, but it should let you adapt quickly to this new economic environment. You can still maximize your advertising potential while keeping within the boundaries of your small budget. With imagination and determination, you should be able to encourage your potential customers to do business once again.

For comments and inquiries about the article visit: Color Business Cards, Brochure Printing.

Janice Jenkins is a writer for a marketing company in Chicago, IL. Mostly into marketing research, Janice started writing articles early 2007 to impart her knowledge to individuals new to the marketing industry.

Author: Janice Jenkins
Article Source: EzineArticles.com
Advice on AdSense

There is a widely accepted belief that “When times get tough the last thing a CEO wants to do is to slash his or her sales and marketing budgets.” After working as a Fortune company chief marketing officer and also as a consultant to dozens of Fortune 100s and hundreds of smaller companies (through two major recessions) I have come to conclude that this corporate old wives’ tale is a bunch of bunk.

When business times get tough (such as they are right now) CEOs and CFOs have to take a hard look at every one of their company’s business processes. They have to look at what each one of those processes costs. And then they have to take a hard look at what each one of those processes contributes to profits (or lack thereof). And, as they identify a process that costs more than it contributes to profits . . . they have to make some budget cuts. Sales and marketing budgets are no exception.

Of course, simply slashing budgets seldom saves a company. And it certainly does not prepare a foundation for restoring positive growth. Slashing budgets is a holding operation. It is an emergency step that may buy time while business process improvements that have potential to get the ship turned around can be made.

Taking a hard look at Sales and Marketing what many CFOs are confirming is that very few traditional Sales and Marketing processes are producing positive financial returns on the costs and expenses invested in them. As a result, CFOs are doing what they have to do. They are recommending slashing sales and marketing budgets.

In the face of budget cuts what most traditionally trained sales and marketing people are doing is continuing to do what they have traditionally done. But they are doing less of it. As a result, sales continue to decline and deteriorating financial situations continue to deteriorate.

What an increasing number of forward-looking CEOs are doing is stepping back to reassess their entire customer-facing business process (in which Sales and Marketing comprises only about one-third of the business process dots). They are redefining that process to include not only Sales and Marketing but also the functions that design and produce and deliver what their customers want. And, they are forming cross-functional sales and marketing business process improvement teams and they are providing them with the training and tools they need to connect the business process dots that Promise, Produce and Deliver what their customers want (and will pay for).

So, Mr. or Ms. CEO, slash your sales and marketing budgets if you must. But, by all means, move on to connect all of your business process dots that build customer bonds, increase sales and profits and build a foundation for quantum growth.

About Dr. Bob Roth and BPI for Sales (SM)

Dr. Bob Roth developed the BPI for Sales method for Making marketing make money(SM) through his work with several dozen Fortune 100 companies and also with several hundred smaller businesses.

Dr. Roth helps companies build cross-functional sales and marketing processes and energize cross-functional sales and marketing teams. He helps them connect their business process dots that Promise, Produce and Deliver what customers want (and will pay for).

For more information please visit [http://www.BPIforSales.com] or contact Dr. Bob Roth at DrBob@BPIforSales.com

Author: Robert Roth, Ph.D.
Article Source: EzineArticles.com
Provided by: Canada duty rate

Management’s first response to a tight budget is often to reduce expenditures across the organization. After all, that’s the best way to balance the budget. Every department suffers equally. Right?

Wrong! Although it may seem right (politically) to accept this decision, it’s the wrong move to make. In the long run, accepting a significant budget cut will harm your organization. When a nonprofit cuts marketing, it cuts off one of the hands that feed it.

Even worse, marketing and communications are often cut more than other areas. Our work is sometimes perceived as being expendable, rather than recognized as a critical means of generating revenue, raising awareness, etc.

That’s what you have to point out – as diplomatically as possible. Rather than taking a defensive position when faced with budget cuts, proactively respond to your leadership’s challenges with either or both of these proposals:

o Leave our budget untouched, and we will increase X by X in the next fiscal year. Even better, if you will increase our budget by X percent, we’ll increase X by an additional X percent.

o Let the marketing and communications team work with the current budget for the next two years, and we’ll deliver an X percent increase in revenues (donor and/or earned income) in that time.

Of course, these strategies require your marketing and communications team to report on concrete results, proving the value your efforts bring to the organization. Examples include:

Direct Marketing (email and mail)

o Response rate.

o Dollars earned per dollar spent (return on investment, or ROI).

Media relations:

o Development of media relationships.

o Coverage by media type (newspaper, magazine, Web, broadcast).

Public Speaking:

o Number of speaking engagements and presentations (and audience count).

Whatever you do, don’t just give in to a proposed budget cut for your department. Consider the options with as much creativity as you bring to your marketing work. Then shape your strategy and come back with a creative solution that will let you and your colleagues continue to build the bottom line.

Good luck!

Nancy E. Schwartz helps nonprofits succeed through effective marketing and communications.

Subscribe to her free e-newsletter “Getting Attention,” at www.nancyschwartz.com/getting_attention.html and read her blog at www.gettingattention.org for more insights, ideas and great tips on attracting the attention your organization deserves.

Author: Nancy E. Schwartz
Article Source: EzineArticles.com
Provided by: Beading Necklace