The marketing budget is a resource that should not be compressed in times of crisis. Find out how it helps you sell more.
Times of economic uncertainty can turn into serious difficulties for companies, as market conjunctions can make it complex to forecast revenues and plan strategies over the long term. One might think that in a time of crisis it is better to cut costs and reduce the marketing budget, but in reality, this move could prove counterproductive. Under these conditions, the importance of the marketing budget cannot be underestimated.
Why is the marketing budget so important?
The marketing budget is an essential tool to help companies maintain their market presence and achieve their sales goals. It is a long-term investment that can help companies weather the crisis and emerge even stronger.
Marketing allows them to increase brand visibility by ensuring that it remains alive and active in the minds of current and potential customers. A judicious use of the budget for marketing strategies helps them differentiate themselves from the competition to carve out a space for themselves in a competitive market that will help them survive in times of crisis.
Budgeting to support marketing strategies allows them to set realistic goals given current market conditions. From plausible goals come activities that can achieve them, and from profitable activities come revenues that allow them to remain in the market even when the situation is not rosy. This explains why some companies manage to survive, and perhaps even thrive, in the black periods that bring down everyone else.
Obviously, the marketing budget is a resource that is not infinite and that one should not invest in unproductive activities, or else fail to implement the activities that can really bring one out of the crisis phase. We can ask ourselves some questions to decide in which direction to invest the budget
- How can I improve what I do?
- What are the customers’ needs that I am not fulfilling?
- How can I improve my customers' buying experience?
Why should we not reduce the marketing budget during crises?
When costs are rising for customers and they have less opportunity to spend, it does not mean that you can no longer sell. It means that the priorities of one's audience have changed and one must now rethink one's offering to make it appear equally appealing or necessary to one's target audience. You must then assume specific (SMART) goals and appropriate strategies to increase the chances of preserving or increasing returns on investment. And if the results so far are not satisfactory, it may be time for a nice rebranding to arrive at a new form more suited to current circumstances.
In this economic environment, the return on investment (ROI) of the marketing budget is crucial, as companies must get the maximum return from their marketing expenditures to survive and thrive. The main reason for not reducing economic investment is that marketing helps maintain brand visibility and remain top-of-mind for current and potential customers. In addition, a well-used marketing budget can help companies differentiate themselves from competitors and stand out in a competitive market.
How to use the marketing budget effectively during crises
There are several strategies that companies can apply to get the maximum ROI from their marketing budget in times of crisis:
- Pay close attention to budget planning to ensure that you are investing funds in the channels and activities that will yield the best results.
- Use data analysis tools to better understand your customers and tailor your marketing messages.
- Boost your visibility on Google's local pack by opening a Google Business Profile tab (if not already done) to provide the search engine with the information potential customers need about activities takes place, important updates, and ways to contact you
- Create quality contents that meet customers’ needs, attracting qualified traffic to your website.
- Using social media to reach customers with targeted ads so that you can focus your budget on realistic goals can be a great strategy for generating leads and increasing sales.
- Engage influencers to promote your products or services, reaching a wider audience and increasing brand awareness.
How to make the best use of the marketing budget in times of crisis
Generally, to achieve maximum ROI from the marketing budget in times of crisis, it is important to act strategically, make data-driven decisions, and invest in effective online activities given one's industry. With targeted marketing activities, the company that decides to invest in times of crisis is able to maintain its market presence and generate revenue. Conversely, another company that decides to cut its marketing budget loses visibility and customers, thus jeopardizing its long-term survival.
Among the main marketing activities that can help enhance ROI in times of crisis are:
- social media promotion investments to reach appropriate audiences with targeted ads to increase sales
- investment in sponsorships for influencers influential in one's niche to increase one's visibility to the identified audience
- content marketing: the creation of original and valuable content designed to address the needs of a given audience in order to gain authority and get leads from people interested in one's solutions
- marketing automation: the use of tools that enable standardized tasks to be done automatically (such as offering answers to frequently asked questions in chats and setting up marketing messages) allows you to cut costs
As you can see, eliminating or reducing your marketing budget is not a wise choice when trying to weather the storm. A compass allows you to find the right course and take on less water. Absolutely avoid improvised or do-it-yourself solutions, which risk sinking the boat! There are non-productive costs that can be cut down to increase profits, which in turn help to survive times of crisis: but the marketing budget is not among them!