LEAN Measures for Small Business Marketing in a Recession

“In a McGraw-Hill study of 600 companies from 1980 to 1985, those that didn’t cut their marketing budgets during the 1981-82 recessions had significantly higher sales after the recession ended. In fact, they had sales that were 256% higher than those that aggressively chopped marketing expenditures.”

As the economy takes more turns faster than a roller coaster, most small businesses are struggling to find the best ways to save money. The first inclination of many small business owners is to completely cut out their marketing efforts. Instead of saving money, cutting marketing expenditures costs companies valuable sales, exposure in the marketplace, and brand recognition with potential clients.

With so many marketing dollars already invested, LEAN measures make the most of small business expenditures without compromising the value of investment or the benefits of a strong small business marketing campaign. Consider the LEAN routes when looking for ways to cut exposure costs to potential sales and customers:

Look for Co-Marketing Opportunities—Whether you are looking for exposure in a local or global market, connecting to other small businesses with products or services that are beneficial to your products and services can give you excellent co-marketing opportunities. By sending out special promotions to their customers and allowing them to contact your customer base, you are doubling your customer reach and exposure. Moreover, a larger advertising buy split between two companies brings less cost and higher ad placement.

Examine Every Marketing Dollar—Every company has marketing expenditures that renew monthly or yearly. So many companies pay for advertising or marketing efforts on an ongoing schedule; they don’t stop to add up those expenditures and where they could save money by buying in volume. From hosting to marketing services, most companies offer package deals or yearly buys that will save small businesses money.

Analyze the Marketing Fat—For every company, there is an incredible benefit in making a long list of marketing expenditures to account for every single penny spent in a year. By asking the question, “What is the ROI (return on investment)” for each item on the list, it is easy to prioritize what should stay in the budget and what is not carrying its marketing load. Furthermore, seek places where less expense can equal more opportunity. For example, replacing direct customer marketing with email marketing or electronic brochures delivered via a website will save thousands in print costs.

Negotiate Your Marketing Mileage—In marketing, advertising, and printing, there are two specific principles that will save money for small businesses. The first, volume buys, requires the business to commit to a certain length of publication or number of ads in order to get a greatly reduced price. The second, run points, notes the different number of prints for market collateral to receive a volume discount on the purchase price.

Often, it takes a measured reaction during tough economic times for small businesses to survive a slow financial forecast. When a downturn occurs due to a recession, the important focus for small businesses is on ways to LEAN down their marketing expenditures while maximizing or maintaining their current level of marketing activity. Employing each of these tactics will give additional income to the marketing budget and enhance the understanding of current marketing spending.

About the Author

Diana Bourgeois is a veteran social media networker, blogger, and marketer specializing in helping companies transition from traditional to social media marketing to gain exposure a larger audience.  A noted Social Media Marketing Expert and Contributing Writer for popular websites like Examiner.com and Suite101.com, Ms. Bourgeois is currently the owner of international marketing company Magic Marketing USA

Today's Author

WHAT’S NEXT?

SUPPORT OUR AUTHOR AND SHARE
Share on facebook
Share on twitter
Share on linkedin
Interested in Guest Posting?
Read our guest posting guidelines.

5 Responses

  1. Before you buy in volume, make sure you have tested the ad or the piece of marketing material before you commit. You should know the ROI before you act, you may have to buy in volume to make a campaign make sense.

  2. Good and impressive article. I learnt more by reading this article. Keep it up. Thanks for sharing.

  3. Search Engines and Small Markets – Once you have identified a small market and built a site, you need to start thinking about Internet marketing.

  4. ROI this is one of the hardest things to track for a small business, Before you know it you have advertising dollars all over the place, a few bucks here and a few bucks there, The problems becomes you just know which dollars you are spend are the ones that are making the phone ring.

    1. Very true, but… that’s why when I spend advertising dollars I only do it on one task. I don’t disperse it around. I then wait. For example if I am going to spend money on “advertising” I will ONLY spend what money I have set aside for that. I will either do it for trade (write the amount of trade) or pay out. Then I track it on that page with G.A. Or lets say I am working on a link building campaign. I will write so many blog posts, (how many did I write and how much would I pay) and pass them around for some solid back links. I don’t mean give them away, but make sure they land on relevant websites. People that I actually made contact etc. Then I wait. The mots important aspect is look at the numbers coming to our site from that lead. There is no blanket answer that’s for sure. BUT, there are ways to see where and how to funnel your marketing/advertising dollars.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe

Informative articles on all things Internet marketing coming straight to your inbox
Categories

As Seen In

Hello there! Please read to understand how we handle your privacy.

This website uses tracking cookies to help us understand how you use the site and improve upon your experience. We do not share any information collected – either personal or anonymous – with any other parties, with the exception of the reporting programs we use in conjunction with those cookies. By continuing to use this site, you agree to the use of these cookies. If you do not agree, please close the site.