Let’s Discuss the B-Word in Marketing–Your Budget

Let’s Discuss the B-Word in Marketing–Your Budget

Considering the current economy, marketing budgets are under more scrutiny. And all too often, the word budget is preceded by “limited” or followed by “cutback.” Just as many of our marketing clients have done, we’ve considered some belt tightening at STOUT Creative.

We realize that like our clients, we too are marketing our business in a very competitive and challenging environment. Our target demographic for new business is a professional audience, – marketing directors, marketing VP’s, etc., We have encouraged our clients to resist drastic budget reductions, and to put our money where our minds are, we have decided not to cut back on our own marketing. But we will be much more diligent about what and where we invest out time and money. And we will certainly be measuring the ROI.

Unfortunately, the marketing budget is too often the first thing to get cut, because it is mistakenly considered an expense. If applied with the right strategy, a bold investment in marketing can be the right move in times like this – especially in B2B marketing. Most experts say market conditions are cyclical, so maintaining or even gaining market share while the pie is smaller will pay off when it eventually, and inevitably, expands. Those who put their heads in the sand will then have to invest heavily to gain back the ground they’ve lost.

Our increased marketing efforts for new business have already begun to show results. By positioning our service as a well-timed solution for marketing professionals with “limited budgets,” we’ve gained some new accounts, and have so far been able to compensate for cutbacks from our established client base. I’ve read a few articles in the most recent that support our theory on sustained or increased marketing investment in tough times, instead of following the word budget with the words: cut back.

Here are the links. Check them out:

  • “During tough times, marketing is often the first to be trimmed, but that’s a shortsighted approach. Instead, companies can invest in marketing as a key to long-term growth.” McKinsey.com
  • “Between inflation, low unemployment, and high interest rates, our economic health gives mixed messages. When times get tough, consumers look to brands to provide value, empathy, and sometimes a little levity.” InsiderIntelligence.com
  • “While marketing teams should always be running revenue-driving initiatives, tough times can be a great catalyst for reviewing whether or not you’re working on the right things.” LinkedIn