Upcoming Recession: Should I Slash My Marketing Budget?
In this upcoming recession, should you slash your marketing budget? This is a difficult question to answer, as there are various aspects to consider.
On the one hand, a recession is often accompanied by decreased consumer spending. This could lead to less demand for your product or service, so it may be necessary to cut back on your marketing efforts to save money.
On the other hand, a recession can also be seen as an opportunity to gain market share from your competitors. If they cut back on their marketing budgets, this could open up opportunities for you to increase yours and acquire ground in the market.
In this article, we will explore both sides of the argument and provide some tips on making the right decision for your business.
The Recession Is Coming – Be Prepared
The first thing you need to do when considering whether to slash your marketing budget in a recession is to be prepared. This means having a plan for how you will respond if sales start to decline.
If you have never experienced a recession, it can be challenging to know what to expect. There are some key things that you should keep in mind. Firstly, a recession generally leads to a decrease in consumer spending as people become more price-sensitive. This means that they will be buying less, possibly reducing demand for your product or service.
However, you need to ensure that you are not unnecessarily using a recession as an excuse to cut back on your marketing budget. Even in a recession, there will still be demand for your product or service.
On a similar train of thought, understanding why most people hate making sales calls and finding solutions to the problem can help them increase sales. This same idea can be applied to a time when a recession might be upon us.
Should You Slash Your Marketing Budget in a Recession?
There is no easy answer to this question. It depends on several factors, such as your business type, the products or services you offer, and your target market.
For example, if you are selling luxury items, you may find that demand for your product decreases during a recession. This is because people will cut back on spending and focus on more essential items. Knowing your marketing budget will help you understand if you should indeed cut it or if you can push harder with the resources available.
However, if you are selling essential items or services, demand for your product will likely remain steady or even increase during a recession. People still need to purchase these things, even in tough times.
And if your product or service is purchased by businesses who will do well throughout a recession, then you’re likely to do well during this time too. A recession might even be a perfect opportunity for you to increase sales if you’re in this fortunate position. You won’t do this without a marketing budget though!
Tips For Surviving and Thriving During a Recession
You can do several things to ensure your business survives and even thrives during a recession.
Social media, email, and telephone marketing are effective ways to reach your target market and promote your product or service.
The latter two really enable you to get in touch with your target market while allowing you to control the message you send out.
It is also essential to focus on your existing customers and ensure they are happy with your product or service. During a recession, people are less likely to switch to a new brand, so it is essential to keep them loyal.
Conclusion
Preparation is key to weathering a recession and ensuring that your business comes out on top. It is essential to have a plan for how you will respond if sales begin to decline.
Do you want to ensure that you are well protected during the recession? Reach out to us today and see how you can get Tilba to make your marketing calls for you, ensuring a higher chance of success and all-round customer satisfaction.
