Don't Touch That Marketing Budget

I am encountering and hearing of businesses making cuts to their budgets. Whether it is staffing, capital purchases, benefits, marketing and many others; they want to cut expenses and increase revenue. Most are not successful increasing revenues. Just because you cut expenses does not automatically increase revenue.

This chart to the left, provided by Laurie McCabe, a Partner and Analyst at the SMB Group through HubSpot Blog, shows that companies with increasing reveues are more likely to view marketing strategically, and invest more in marketing than their counterparts with flat or declining revenues.

Marketing is one area that a company can not expect to cut and also increase revenue. I know there are exceptions to every rule, however, the majority of businesses that decrease their marketing budget will see revenues flat or decrease. Small businesses find this more challenging than larger businesses.

For small businesses the internet and social media can be the answer. Web-based marketing and social media tools are usually less expensive than traditional marketing. It can be easier to use and more effective than traditional marketing. This is also true for larger businesses.

Using internet and social media marketing does not require you to commit to long term contracts and tie you into a stationery marketing strategy. A continually adjusting and changing marketing strategy is more relevant and effective. You are able to try different approaches with out making changes to a long term agreement. Trying different messages at the same time to determine which is effective is a common strategy.

In order to be effective in internet and social media marketing, you must have a plan. Now that is another blog for another time. It will not take a long term contractural agreement, however, it will take time to be effective.

If you are going to decrease your marketing budget, you must have a marketing strategy that will continue to reach your target market. Internet and social media marketing may be the answer.