Posts Tagged ‘Budgets’

In these tough economic conditions most organizations are looking to cut costs where ever they can. One of the areas the finance guys may choose to take a look at is the Human Resources department! What arguments can HR professionals put forward to explain why their budgets are adding value and are necessary to the organization? After all, most non HR people are pretty clueless about what HR people do at the best of times.

Following up on yesterday’s tips on how to explain Human Resources functions to a lay person, here are some ideas to help the embattled HR professional defend his or her budget:

• One of the key functions of the Human Resources’ department is to identify, onboard, and develop employees to fill the essential business-critical roles. Without an ably staffed HR department other areas of the organization will suffer from a lack of the resources they need.
• The Human Resources department monitors and manages the organization’s compensation and benefits system. Organizational morale would plummet very quickly if employees perceive they are being compensated unfairly or ineffectively – and Human Resources professionals (with a budget ) are required to get this done.
• Human Resources play a key role in facilitating the lines of communication between management and employees. Not too much explanation is necessary here – no communication leads to poor morale, low productivity, and reduced profitability.
• The human resources department is responsible for supporting career development and helping to ensure that the right people are at the helm of the ship. Cutting back on the HR department’s ability to monitor and develop the company’s leadership can have dire consequences for the longer term viability of the organization – after all, the up-swing in the economy will come sooner or later (hopefully sooner) and when it does the organization needs a strong leadership bench in place – HR plays a critical role in making this happen!

Ben Nash is the editor-in-chief of DailyHRTips.com. He is the founder and chief developer of the blog, providing tech/design support as well as tips and book reviews. Ben has held many interesting jobs in his professional career, including: barista, landscaper, public policy intern, barista (again), professional horse wrangler, ski lift attendant (aka “liftie”) , political science teaching assistant, marketing and sales assistant, ecommerce/web developer, and Supreme Allied Commander of NATO (briefly). Due to his constant “dabbling” , Ben has interacted with many people, in many different organizations and offers some interesting insight on the human resources game. Please contact Ben at ben@dailyhrtips.com or visit http://www.dailyhrtips.com

Author: Benjamin J Nash
Article Source: EzineArticles.com
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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

Profit is achieved by maximising your margin on increased sales. Spending money on marketing wisely will mean your costs can be contained, while sales revenues increase. But how do you do that? This article discusses why measurement of everything, marketing that you do, is so vital.

Let’s start off with some basic principles. You need to sit down and answer the following questions, if you really want to create a marketing budget that maximizes your profit.

* What is your average annual turnover? ……._______A
* How many customers do you have?…………….______B
* Customers less than a year old…………______C
* Customers more than a year old ………______D
* What is your net profit margin? (%age) ………______E
* How many leads do you generate each year? ______F
* How much do you spend on marketing? ………______G

If you can convert more leads, by targeting better and closing more sales, then you will reduce your customer acquisition cost. I guess most of you will know where I am going with this, but it is remarkable how many people have not even done this basic exercise. In another article on CRM, I will refine this further, by helping you find out who your most profitable customers are.

OK, let’s do some simple mathematics. To get how much each customer is worth to you do the following.

Customer Worth = (______A * ______E) / ______B – this is the Euro value of what each customer contributes to your wealth fund annually.

If you spend less than that on each lead, then either you are doing very well, or else you may need to spend more. Some marketing pundits, who want your money, suggest that you can afford to spend all of your profits, after your own salary, getting new leads. Personally 10-20% spent wisely can yield even better returns, as your business grows.

So how much do your customers actually cost to get?

Customer Acquisition Cost = ______G / ______C is this more than 20% of your Customer worth? If it is we need to look at two key things the first is your

Lead Conversion Ratio = ______F / ______C. If you can convert more leads, by targeting better and closing more sales, then you will reduce your customer acquisition cost. What’s more, by analyzing which lead campaigns were successful insofar as they had the highest lead conversion ratios, you can target and focus better.

Conversely you could spend less on trying to get new customers, now don’t just cut your budget, get a lot smarter in how you operate your lead generation programs!

So let’s look at your existing customers. Are their ways that you could sell more to them? Sell additional products and services? It is said that it costs at least 5 times as much to sell to a new customer as it does to an existing customer.

Existing Customer Worth = (______A * ______E) / ______D

Simple mathematics again, either increase your existing leads generation budget by 1/5th and double your sales, or significantly reduce your lead generation budget and get better results and spend some of the savings on up-selling to existing customers.

In conclusion, by operating a smart lead generation campaign for customer acquisition while continuing to sell to existing customers, will reduce your marketing budget, increase your sales’ revenues and break the bank with profit.

This article is one of many sales and marketing articles written by Peter Lawless of http://www.3r.ie – Marketing Consultant delivering Marketing Strategy & Online Marketing, Sales Trainer, and Public Speaker.

Author: Peter Lawless
Article Source: EzineArticles.com
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It’s tough to grow your small business when you’re on a tight budget. With the high cost of insurance, taxes, and energy costs soaring, it’s difficult to keep up or compete with larger companies with larger budgets.

But it is possible if you use the right budget-minded tools.

Here are 5 cost-effective ways to grow your small business sales:

1) Sales Training – Sales is the lifeline of your small business. If you don’t have sales, you don’t have a business.

Could your sales reps use more training to increase their closing ratios? Generate more leads? Qualify more prospects? Of course they do.

Use web video conferencing to conduct comprehensive training over the Internet. You can give PowerPoint presentations, demonstrate new procedures or products, and much more for an effective sales seminar.

2) Daily Sales Meetings: The more connected and accountable your sales reps are – the more successful they are.

With video web conferencing, you can have daily sales meetings with your reps whether they are located in the same city as you or scattered across the globe. Or you can have one-on-one meetings if needed.

3) Sales Webinars: Even if you company isn’t physically located in every state or country, you can still have a sales presense.

Conduct a webinar to thousands of interested prospects or customers right from your small business office.

4) Qualify Prospects – Use Audio and Web conferencing tools to quickly and easily qualify your prospects.

In less than 20 minutes, you can find out if your prospects:

Can afford what you have to offer

Want what you have to offer

Need what you have to offer

Without spending an hour driving to a meeting or hopping on a crowded plane.

5) The most important part of successful selling is sales follow-up.

With video web conferencing, you can follow-up with your customers as often as you need to in 3 clicks. And you don’t have to leave the comfort of your office.

These are 5 ways small businesses are growing their sales without breaking their budget.

Sonja Mishek is a Sales & Marketing Director at VideoLive Conferences. http://www.videoliveconferences.com

Try Web Based Video Conferencing for FREE…plus get 2 FREE web cameras when you subscribe…yours to keep – even if you decide to cancel.

Author: Sonja Mishek
Article Source: EzineArticles.com
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