The marketers’ diet for a recession
Cutting marketing expenses
The current recession will require companies to scale back and decrease their operating costs.
Cutting back on:
- Sales can only be achieved by less salesmen and staff.
- Administration will require to lay-off administrative employees
- Research and development is again about firing and is a risk for the future
- Production quality will come back as a boomerang
One of the most obvious and most convenient to achieve is to decrease marketing costs as these involve third parties, hardly involves firing people. It’s the easiest but maybe not the best to do as during recessions you need as many qualified leads as possible.
Marketing costs
In a marketing budget the typical large costs are:
- Industry trade shows
- The yearly dealers, resellers and partners conference/meeting
- Agency costs
- Multimedia advertising
- Printed leaflets and product sheets (as pdf’s can be send electronically)
Or anything which involves multiple personnel and employees being off-site (travel and lodging costs).
These are the marketing expenses that are likely to be cut during a recession.
Marketing channel migration
As these marketing events and efforts represent important amounts of money, the elimination can result in having additional funds available allowing increasing the spending on other marketing channels and methods. Like email marketing, online advertising, webcasts, website lead generation, content marketing and social marketing.
Due to the recession, marketers will have lower budgets allowing them to have less off-site events and more online events or efforts. There will be a shift from:
- Physical to online marketing efforts
- Outbound to inbound marketing
in order to save costs. this will probably drive more visitors to your website requiring to increase your online conversions.
Less might even be more as the marketing channel migration will change how the company addresses to their potential and current customers. Putting the VP marketing or Marketing manager on a diet might even have a positive effect as the entire marketing mix needs to be reviewed.
Will you put your VP Marketing on a diet ?
What marketing cost will you decrease ?
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