Marketing Spends…To do or not to…

How is that when things are going well, marketing is seen a a revenue generator, while when things are down, marketing becomes a a cost center that needs to be reduced?.  

While one should look at cost cutting where appropriate, but one should further look at a `data-oriented’ way to assess the return on investment (ROI) of your marketing spending and hence how to think about optimizing that investment.

You need to cut the marketing costs that are not delivering for your business, but maintain or even increase spending on investments that are yielding returns.  You often have to trade off short-run profitability to invest in your brand and your customers for the long haul.

Investments made in marketing, even in the worst of economic times, can yield dividends for your business. Marketing your business may require funds for engaging in various activities, but in tough times people work to plug the wastage effectively.  

When times are tough, one takes pride in focusing on Lead Generation and Conversion. In the process targeting, segmentation, and branding, typically tend get even less attention.

Simply put, rough economic seas require a good captain to navigate through tough choices. “heavy weather” is combination of strong winds and tall waves. Tropical storms consist of rotating masses of warm and humid air and create thunderstorms with high waves, flooding rain and strong winds.

Looking on how can how one can maneuver the rough seas, heavy weather and tropical storms demand of crew’s (management team’s) preparation and immediate response, in order to ensure vessel’s (firm’s) safe passage with no or less harms on vessel’s cargo (Offering), or even vessel’s personnel (Employees).

1.   Master and Engine Room should be made aware of the weather conditions by the relevant personnel (Mix of Information and Intelligence)

2.   Crew should be advised to avoid upper deck areas (Minimize High Risk prone areas)

3.   Safety lines and hand ropes should be rigged where necessary (Practice a Risk Averse strategy)

4.   Vessel’s (Firm’s) course and speed should be adjusted

5.   Necessary maneuvers should be made in order to minimize the risk of damages

6.   Weather reports should be monitored and reported to the appropriate authorities.

7.   Vessel’s accommodation, machinery and movable objects on deck, engine room, galley and storerooms should secured (Inventory & Warehouse Management)

8.   Weather deck openings, ports and deadlights should be closed

9.   Cargo (Product Offerings) should be secured as appropriate

Rediscovering your Marketing bearing would take some time, but sooner the better as your time is costly and valuable. Marketing hence should not be viewed as a cost to be minimized, but rather as a key driver of revenue.   Ultimately, you are investing in your business for profits, and at the end of the day, profits, revenues – costs.

Marketing is the engine driving that profitability through revenue enhancement.

This leads to the question: Is it time to fight or flight? 


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