The possibility of another recession is on the horizon. Here’s what you need to know about getting your marketing budget ready.
With the headlines ablaze with worries of a recession, businesses are sitting down and taking note. Marketing is in an interesting position. It’s critical to the growth and expansion of a company, but it’s an area that often comes under fire during aggressive cost-cutting measures. If you’re a leader in a marketing department and thinking about how to fare well during the potential recession, here are some things to keep in mind.
Look at Your Cost Structure
In a recession, the first thing companies do is cut costs. Be aware of where you’re able to reduce spending, and have a plan at the ready. Knowing that you can reduce expenditures quickly and still keep your most important assets in play can help you keep control even if financial performance begins to slide.
Have a Plan for Acquiring New Customers
Take the time to prepare a battle strategy for growth in tough times. What messaging, channels, and assets will your company lean on if things become difficult? Showing how your department will play a pivotal role to growth in a cost-effective way can help turn cost-cutting and head-cutting to other departments.
Find Ways to Increase Efficiency
Outsourcing and automation can be smart strategies to help you get more done. Take a closer look at the possibilities for which processes you can outsource and where automation can help you be more efficient. Leveraging tools to get more done on a tighter budget is a great way to support long-term growth and prepare for leaner times.
Be Ready to Lead through Tough Times
A clear vision can mean the difference between thriving and failing in a tough market. Your marketing department can help your company stand out in a market making its way through a recession. What are your advantages? What areas should you emphasize?
Determine How You Will Serve Customers During Tough Times
Ultimately, your business thrives when it serves customers. How will their needs change during difficult times? For example, expensive products that are backed by warranties are a better investment when finances are tight. Consider Amazon’s example: The price of buying books might be outside someone’s budget, but an all-you-can-read subscription to Kindle Unlimited for $10 a month might be a great entertainment option. Think about how you can adapt your costs, offerings, and larger business model to help your customers do well when times get tough.
While the arrival of a recession certainly isn’t guaranteed, it is a point of consideration. Having clear guidance and a strong strategy can help ensure that your company and marketing department can weather any economic environment.