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Cutting PR can be bad for business
"Customers who notice your brand has suddenly fallen silent will soon smell failure."
That warning, issued last week by the Chartered Institute of Marketing's director of research and professional development, summarises the danger of making big cuts in marketing budgets – they can tighten the vicious circle, accelerating any downwards spiral in sales.
But it doesn't have to be like this.
Option 1: Gain market share at reduced cost
Recession is an opportunity to gain market share while over-cautious competitors cut PR and marketing budgets.
Research dating back to the 1920s shows companies who increase their marketing spend in recession increase their market share and achieve higher growth for several years afterwards.
For this reason, at full-service marketing agency PRG we're cranking-up our own marketing activities even though our order books are as healthy as they've ever been. Recession is an opportunity to take business from competitors who have been frightened into inactivity.
Option 2: Slash marketing budgets and marketing profile
You might cut PR and marketing budgets and wait for sales to come in until the economy starts to recover.
You'd better hope your competitors are doing this too. Those who slash marketing budgets and then have to recover lost market share will typically require a marketing budget in the year after recession that is 60% higher than the amount they cut.
Option 3: Maintain marketing profile at reduced cost
If cuts are unavoidable, find ways of reducing your PR and marketing profile less severely than you reduce your marketing spend. A marketing agency may not know much, initially, about your business, but that will work to your advantage.
They'll identify key messages that will help sell your products or services. A good agency will bring you fresh strategic thinking. Insist on seeing examples of their previous work too. Case studies can be found at: www.prgltd.co.uk
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Sunday 12 February 2012
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