In these tough economic times businesses are looking to tighten their belts and cut spending. One of the first places many businesses cut expenses is in advertising. Many companies view advertising as a luxury and not a necessity. This is a bad view because advertising brings in sales which are crucial to keep the business afloat. Cutting the advertising budget during a recession is one of the biggest mistakes a company can make. It will lead to a downward spiral which from you may not be able to recover.

Advertising is selling

When business is slow why would you want to slow it down even more by cutting downsales? The idea is to sell more not less. Cut out advertising in slow times and sales will decrease even more.

Build your brand

When other businesses are slowing down it is a great opportunity for you to increase your company’s exposure. Get your name out there and take advantage of the holes in advertising that other companies have left. This is a great time to start a whole new campaign. A hugely successful example is Wal-mart. Walmart launched their “Every Day Low Prices” campaign in 2000-2001.

Know your consumer

Change your strategy as the market and your customer changes. Understand them on a personal level. Listen to what they have to say. Feel their pain. Know how the current economic times are affecting them and create your plan around that. Look at offering discounts, coupons, incentive programs or rewards programs. When given a choice, people are much more likely to spend their money with someone offering a discount on their services. Keep that in mind when coming up with your marketing strategy.

If you cut your advertising budget how will customers find you?

Here is a link to the advertising and marketing blog to which I contribute. Please stop by and leave a message!

http://www.gwadagency.com/?page_id=7

Erika Wahl
Galvanek & Wahl Advertising Agency
www.gwadagency.com
(919) 341-2623