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Should You Cut Marketing Costs During A Recession

Should you cut marketing costs during a recession? Most businesses reduce their marketing when times are tough. Businesses that maintain their marketing budgets while redistributing those funds to better reflect the current environment, on the other hand, outperform those that cut marketing expenditures, whether in product development, advertising, communication, or pricing.<br><br>

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Should You Cut Marketing Costs During A Recession

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  1. Should You Cut Marketing Costs During A Recession? Shutter Up Creative Designs

  2. Introduction Should you cut marketing costs during a recession? Most businesses reduce their marketing when times are tough. Businesses that maintain their marketing budgets while redistributing those funds to better reflect the current environment, on the other hand, outperform those that cut marketing expenditures, whether in product development, advertising, communication, or pricing.

  3. Studies That Prove Cost Cutting During Recession Is Not a Good Idea In his 1924 Harvard Master’s thesis, Roland Vaile divided 250 businesses into three groups: those who did not believe in advertising, those who reduced advertising during the Depression, and those who increased advertising. Businesses that increased their advertising spending during a recession saw a 20% increase in comparable sales compared to those that did not advertise and a 24% increase compared to those that reduced their advertising budgets after four years. Additionally, a  study in other parts of the world such as the UK’s  shows that products introduced during a recession have a better chance of long-term survival and higher sales revenues.

  4. So, What’s The Solution? Companies must distinguish between the necessary and the wasteful when it comes to marketing budgets to maintain their brand’s strength. In other words, cutting costs without a plan can harm your company’s market visibility, especially online. Changes in Google’s algorithm or a lack of new content can cause your organic rankings to fall over time, decreasing organic traffic to your site. Paid channels, such as digital advertising, necessitate a consistent budget to keep advertisements visible in search results. Get rid of any outdated or unnecessary equipment that is complicating the lives of your employees. Subscriptions that aren’t being used to their full potential should also be reviewed.

  5. Final Words During the recession, determining your best course of action is challenging. Invest this time in reorganizing your budget to meet your company’s needs and the desires of your customers but DO NOT CUT MARKETING. While it may be unavoidable to be more frugal, a well-coordinated team can maximize results while minimizing costs. It may be time to restructure and reevaluate but you must remember how important your branding and SEO efforts are!!! Always remember – Marketing is considered an investment in your business, not just an expense.

  6. Thank you

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