In times of economic downturn, investing in marketing is a big challenge, as if it is not well planned it can compromise your company’s finances, and that’s not what you want, is it?
The key is not to be afraid to keep this industry so important for your brand propagation. After all, no marketing, no sales growth.
So follow this article and learn once and for all how to invest in this area without affecting your pocketbook. Good reading!
Why keep investing in marketing in times of crisis?
When the economy is stable, companies do not hesitate to invest a fraction of their capital in marketing, but as rumors begin to collapse or even fall in revenue, many companies suspend investment in this sector, which is a big mistake.
And the reason is simple, marketing keeps your brand well positioned in the market and is responsible for your image to your customers. It is what guides your business to meet the needs and wants of the target audience, after all, it is these people who will consume your products.
How to separate a portion of investments for marketing?
The first step to take is to check for available funds. With countless costs, taxes and unforeseen events, having this money available may seem unlikely, but fortunately it is not. Just change the perception of things.
Like many business owners, you may think of marketing as a superfluous cost, but you may also come to consider it as an investment that belongs to business planning. The main problem is that some are not aware of this difference and, to make matters worse, measuring ROI can be a bit laborious.
Before investing, you need to have a “redundant thinking”, ie you must know how much needs to be invested in marketing according to the results previously defined in your strategic planning.
So just make a simple calculation based on the following questions:
- What revenue should I generate next fiscal year?
- What is the average annual spend per customer in my business?
- What is the percentage of sales closing?
With these questions you can find out the amount needed to invest in marketing.
To further facilitate this process, it is important to classify marketing into two aspects responsible for generating brand value, check out:
Institutional Marketing (MI)
This type of marketing targets actions so that consumers know the company’s intentions as well as its products and services. It specifically focuses on brand growth through campaigns in:
- social media;
- graphic materials (catalogs, business cards, folders, etc.);
IM works best when a continuous investment is made, ie instead of separating a portion of revenue, it is better to set a fixed monthly amount to cover disclosures.
Commercial Marketing (MC)
The marketing of the commercial segment is focused on increasing sales, such as seasonal campaigns (Mother’s Day, Easter, Christmas, etc.) and promotions. To do this simply separate a part of the expected revenue.
With this amount you can program and simulate possible actions, make budgets to know the necessary costs, search for suppliers able to perform them, create a schedule to define the best practices for the seasonal period of your brand and especially point out objectives for these activities.