In challenging economies, most companies often face the question of when and where to cut expenses to help improve their bottom line. Often, it’s marketing that gets cut first since it's the most visible and external expense.
A company may feel a positive impact immediately in the way of cash flow when a sale is completed, but what is overlooked is the long-term effect of not staying top of mind with your target audience.
In many industries, the buying cycle can be as long as 18 months, which means the customers you have now were the result of some market influence you created almost two years ago. When the decision to cut marketing presents itself in order to reduce costs, you must resist the urge to cut. To effectively grow your business during downturns, it takes a steadfast company to stay true to strategies and push through the challenging times.
Taking a hard look at the impact marketing has on your bottom line by measuring the return on all investments related to marketing and advertising helps ensure your brand stays strong and relevant.