How to save on marketing and advertising?
10 Reasons not to do it
There are two scenarios you are probably looking for how to save on marketing:
- The first is that your sales are low, so your income is not large enough to be spent on Marketing.
- The second, your company has large expenses and you are looking to cut costs so the marketing budget is affected.
These two scenarios are very general situations that happen to most businesses, especially SMEs and entrepreneurs, and the main reason for this is because they trust the word of mouth and they think that investing in marketing is a high expense.
According to Entrepreneur, micro and small companies invest in advertising less than 1% of their turnover, while large companies spend between 6% and 18%, and one of the reasons why this happens is because they decide to depend completely on the clients that already have and in their recommendations, that is to say, again in the word of mouth.
Word of mouth is an excellent type of advertising, it means that your company is doing its job well to the point where your customers recommend you for the good service you have offered, a disadvantage of this method of advertising is that it is slow, has a limited reach and reaches the point where your growth stagnates if you just depend on the recommendations.
Speaking of saving budget in marketing, sadly people and companies think that saving in marketing is a good option, since most of your customers already know you, recommend you and find out about your business by word of mouth. Does this sound like familiar? Has it happened to you? Now I have a news, this is not a good action to take, if you cut your marketing budget means that your efforts to reach and get to know the customer better will be affected: which means fewer sales opportunities!
The consequences for not investing in marketing that I mentioned above are only few of them. Next, I'll show you 10 reasons why you should not save on marketing:
1. You do not know your client well
The most obvious consequent effect of not investing in marketing is that you do not know the profile, needs, behaviors and habits of your client. Which is a sin in the business world !, since how can you get success in the sale of your product or service if it does not meet the needs of your client? People are not going to buy something they do not need, and that is why it is vital to know exactly the demographic and psychographic profile of the people you sell them to.
2. You do not implement the right strategies
This is an effect that emanates from the first one (not knowing the profile of your client well), even if you plan and execute an impeccable strategy, if it is not aimed at the audience to which it should be directed, or if this strategy does not emit a suitable message for your audience, your strategy will not have an impact and favorable results.
So before implementing any changes to your product or service, or before launching any sales strategy or advertising campaign, you have to make sure that these are aimed at solving a problem or need to your client or target market. If you do this, your company is on the right track.
Remember; always focus first on developing clients and then on the product; well, people are the ones that buy your product. This phrase belongs to the methodology of "Customer Development" by Steve Blank, I leave the link where you can read more about it.
3. You do not see consumer trends
One of the benefits that marketing brings is that it allows you to identify trends in consumer behavior, that means, it allows you to recognize the changes that your target market may have in their consumption and purchasing habits; (among other changes).
It is normal for the market to experience changes in their purchasing habits and behaviors, and often these are due to trends that exist in the market at that time, an example of this are the trends towards environmentalism and having a healthy life.
Locating these changes and trends is easier than you think, in the following article: How do we get more and better customers in a month ?, It can give you an idea of how to achieve it.
4. Attract fewer customers
Consequently, if you do not invest in advertising and other means of attracting customers, you will have the logical result of having fewer clients.
Something similar happens when you invest in advertising but without knowing your target market, you may decide to invest in flyers, spectacular, and other similar media, but if they are not the appropriate means and if they do not emit the right message to identify with the customer , then you can not attract customers, or you will attract less than you could have captured if the strategy had been correctly planned according to your client's profile.
5. Limited growth with word of mouth
As mentioned previously, word of mouth is a good technique, because if people are recommending you it means that something is doing well, and that is why they are communicating it. However, if what you are looking for as a company is growing or attracting more clients, using this technique is not enough for you, you already have the good service now what you have to do is to "potentiate" that word of mouth with which you already have accounts
If you only comply with the recommendations, the growth of your company will be limited, this is another reason why companies do not want to save in marketing, it is impossible for your company to experience growth if you do not know the needs and behaviors of your client, but you work to solve that need, and communicate it in the indicated manner.
6. Goodbye positioning
The positioning of your brand goes with the acquisition of clients that you have and the service that you perform with them. By positioning is understood as the place you want to occupy in the mind of your target market, and this is built from the image of the company, the communication that this has towards its customers, the consumers' shopping experiences at the point of sale, the satisfaction that they experience with the product or service, and the service that is offered to your clients after having acquired the product.
So if you save in marketing, you can hardly achieve a positioning of your brand, because you are not communicating that you as a company can help them solve their problems.
7. Goodbye differentiation
In a red ocean, that is, a market that is full of competition, what companies seek is to differentiate themselves from others, highlighting the benefits that the consumer can obtain with their service.
In order to achieve a differentiation, it is vital that you know your clients perfectly and that you are constantly interacting with your target market in order to identify their needs and behaviors. If you really know the opinion of your client about the performance of the product and the unmet needs of the target market, it is very easy for you to be able to differentiate yourself since you will be able to know the functions, characteristics and benefits that your product or service must have in order to satisfy your target market, that means, you will be offering something that the client needs and is looking for.
8. Saving in marketing is a dead strategy
Many companies in times of crisis think that saving on marketing is a good idea, False! How to save or remove the main tool that helps you get more customers and increase sales?
On the contrary, in times of crisis you should keep your budget in marketing and not cut it because if your company is still working to be close to the client while the others decide not to invest in marketing, it means that your positioning and sales will not be affected during that stage of crisis and after this will grow.
9. Analyze what really works and what not
If you belong to those who do invest in marketing but for the moment has not brought good results television ads, spectacular, flyer, and all that kind of advertising that is intrusive, what you should do is find another type of resources whose results are easier to measure and to adapt it to your business.
The aforementioned means have a great weakness: that they are mostly intrusive media, that is, people do not want to see them and the information that is put in them is not the right information for the right audience, in a few words, it is not shown in the place or adequate time.
10. Lower income
To finish the last reason why you should not save in marketing: because you get lower income, this reason can be guessed from the others, since if you attract fewer customers that symbolizes less sales, which is equivalent to lower income. Remember that marketing is the engine that helps you boost your sales, it is a department and vital activity.
So do not save in marketing, it is not an expense but an investment.