Never stop marketing: How to do it in financially harsh times

Inflation is raising its head again, and it seems like it’s here to stay for quite some time. Naturally, when money’s value diminishes, people start to cut down on expenses - and this is true also for businesses and companies. As money’s buying power weakens, they try to keep their heads above the water by spending less. Sadly, in many cases, a company’s marketing efforts are among the first to feel the cutbacks.

This, however, is a huge mistake. A business operating in a time of inflation indeed has to cut back, but that can and should be done differently. “When a company has to somehow cut expenses, the marketing budget is in many cases the first victim. I get it, it’s tempting,” said David Galperin, owner of ‘Gil Group’, A group of companies in the field of marketing communications and media. ”After all, marketing is costly, and you can’t see its benefits instantly. However, a true leader in business is one that sees the bigger picture, even in financially harsh times. Marketing is the bread and butter of business growth. Therefore, it should never be overlooked or underestimated.”

Marketing efforts (Photo by Shutterstock)

Marketing needs are evergreen

In order to prioritize what to save money on, a manager has to understand what matters most in the long run for the business. Marketing efforts are like planting seeds: One usually harvests their fruit only after a season or two. One of the basic aspects of successful marketing is grasping existent pieces of interest in the service. This can be divided into two main categories:

• Customer retention - Neglecting existing clients is a common mistake made by many businesses. Now that Google tracks all our searches and online actions, you can be sure your clients are bombarded with ads by your competitors. Therefore, they might just leave you at any given time. For this reason, it’s more important than ever to check on your clients. Are they satisfied with the product? Can they withstand its price? Consider offering them discounts on some services (if you can) and to ask for their opinion. The shift from a passive to an active customer is likely to strengthen their loyalty towards your product.

• Remarketing - Between clients and potential clients, there is one more group of people who you might have been overlooking so far: the ‘almost-clients’. These are people who clicked on your ad, or even maybe scrolled through your site, but made no purchase. You should definitely target this group. Try offering them some deals or maybe a free trial, if this is relevant to your product. It is a marketing effort that is much cheaper and easier than going through the whole marketing process with new potential clients - and it can certainly be of aid when times are tough.

“It’s fundamental to maintain a steady stream of marketing regardless of current revenue,” added Galperin. “You usually can’t feel the consequences of loosening marketing efforts right away, but you will surely do after a few months, when you run out of new leads. Patience is key. Potential new customers and new sales won’t come your way unless you invest in marketing.”

Let’s look at some other ways you can make your business more financially effective during harsh times - ways that can be beneficial in the long run as well as in the short term.

Inflation (Photo by Shutterstock)

How to spend on marketing and survive

The fact that marketing is an ‘evergreen’ necessity doesn’t mean the expenses on it can’t be lowered. Negotiation is a legitimate tool when choosing a marketing firm to work with. Of course, trying to bargain with Facebook will probably not bear any fruit. However, if a company goes for local advertising agencies, there’s a good chance it’ll be able to lower its initial offering, especially in times of financial instability.

If that is not enough, it’s time to cut back within the business itself. This can be done by preferring in-house work over outsourcing or going for less expensive service or product providers. Another approach is letting some employees go. The remaining ones will definitely have a harder time at work, but it’s a temporary situation, and they will probably adapt to the new reality pretty quickly.

In many cases, when a business is growing short on funds, there’s no escape from raising prices. Surely, this will make some of your customers dissatisfied, but Galperin has a solution for that as well.

”You should make an effort to shift the attention away from the pricing issue. Raising awareness of new products and technologies, or shifting the focus to your satisfied customers should do the work. This has the potential to make clients understand that the higher rates are justified and inevitable.”

Business expenses (Photo by Shutterstock)

A company’s revenue engine

Marketing is the revenue engine of a business. If it stops, the vehicle won’t move. For this reason, marketing efforts should be prioritized regardless of the financial situation. That’s why a business must aspire and make a true effort to maintain it as much as possible, even when that seems financially complex.

As Galperin summed it up, “marketing should be dynamic and reassessed on a regular basis. After all, competition is getting harder and fiercer all the time. That’s why the digital marketing firm I’ve founded and am the CEO of - SMPS Marketing - sees marketing as an asset for the whole process of the sale. We evaluate our clients’ marketing modus operandi against their needs and constraints as an organization, and find the optimized and technological solution that will maximize their marketing efforts, while minimizing the cost.”

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.