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How to cut marketing spend

Tough times means tough decisions, and marketing spend often comes under the spotlight when companies want to make savings. But what to cut,and how much? How do we make sure we don't make a difficult situation even worse?

What does your customer think?

Why do your customers buy from you? Is that your view or do you really know? A great many businesses think they know why their customers buy from them, but don't actually ask their customers.

Mobile Marketing

Websites are now a very common way for businesses to promote their products and services to existing and prospective customers. However, there is another communication channel that reaches more customers than the internet – the mobile phone. No longer just a device for making and receiving calls and texts, the mobile phone is now emerging as a powerful marketing medium.

Direct Marketing

Direct Marketing can be highly effective and generate a significant return on your company's marketing investment. However, making the wrong decisions can lead to very disappointing results

Network Marketing

Network Marketing An increasing number of small and medium sized companies are turning to networking marketing as a means of growing their business. However, as with any form of marketing, there are a number of tricks and tips to unlock the potential of networking.

Customer Management

Farming vs. Hunting? When it comes to customers, where should a business invest its time and money? Should a company aggressively pursue new customers with exciting marketing activities and promises or concentrate its efforts on retaining the loyalty of the existing customer base?

How to cut marketing spend

Home Aardvark Consulting  

9 Oct 08
Many businesses are under pressure to reduce marketing costs as their turnover, cashflow and profits feel the pressure of the reduced levels of economic confidence.

Other companies see opportunities to grow their business - lower prices for advertising and marketing activity; competitors cutting back on their spends.  Their challenge is to find the extra money to fund this additional activity.

The solution for both situations is the same - cut existing ineffective marketing activity; but how?  The key is measurement; a well established principle in engineering is "if you can't measure it, you can't improve it".  Try answering the following questions:

  • Do you have clear objectives for every marketing activity?
  • Which marketing activities do you currently measure?
  • Are their any which don't meet the objectives?
  • Are their any activities that you can't measure?
Any activities that are not meeting their objectives or are not being measured are candidates for cutting, but don't rush to stop them - it may be that they are actually very valuable, but the current measurement system is not detecting the contribution they make to the success of the business.  If after further consideration they still look like poor performers, then it's probably time to reduce spend or remove completely and either save the money or redirect it into more profitable activity.

Another strategy to consider if money is tight is whether you could 'pay' for activity in a different way.  For instance, if workload has dropped, don't pay a distribution company to put flyers through letterboxes - get one of the team to do it with some of their new spare time.

Aardvark Consulting has helped many different types and sizes of businesses develop systems to easily measure the effectiveness of marketing spend and make decisions about where to spend more and where to make savings.  For a no-obligation discussion, call Chris Hutchinson on 01905 753 589 or if you have a specific questions, send us an enquiry.

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Phone: 01905 753589
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