Budgeting during a downturn

In bad times, it might be tempting to cut your marketing budget. This is usually a mistake that could prove costlier later. Downturns present an opportunity to gain market share without compromising on price.

Instead of suspending marketing, look for ways to reallocate your budget. Your focus should be on short-term and intermediate-term efforts. 

Here are some specific examples to consider:

• Lead generation campaigns to boost revenue

• Promotional offers to increase value

• Bundling of products and services

• Positioning of essential items

• Safety education and information

• Customer retention campaigns

Evaluate your customer spending patterns, taking stock of activities since the beginning of the crisis.

Pay special attention to how the economic outlook is shaping these spending patterns. Then, move your budget around to align with current demand.