You may have seen in the news recently that the UK government is planning to launch a new campaign, calling on businesses to slash their prices to help with the cost of living crisis. 💰
Somewhat ironically, it’s been reported that one way that the campaign will suggest doing this is by reducing the amount of money that businesses spend on marketing. 👀
We think that’s a terrible idea – here’s why:
✨ It’ll impact brand recognition. At a time when people are struggling financially, you need to have brand recognition – and marketing is crucial for this. Firstly, you want your potential customers to recognise the value of your product or service, and believe that it’s worth spending their hard earned money on. Secondly, they might not be ready to spend money right now – but when they are, you want them to think of your business first! 💗
✨ You might alienate your customers. Loyal customers are great for your cashflow, and also help to grow your business organically through word of mouth – so they’re really important! By slashing your marketing spend and disappearing from their radar, you’re reducing your brand’s personal connection with them. This may lead them to feel undervalued, and even look to your competitors instead. 🤷🏼♀️
✨ Marketing is pretty much the only area of your budget where spending a set amount of money can lead to genuinely unlimited results. Look at it this way: if you cut your marketing budget, you will save money – but only the specific amount you’ve set aside for marketing. However, if you continue to invest in marketing, who knows what your ROI could be? ⚡
What do you think? Will you be cutting your business’ marketing budget this year? Let us know in the comments! 💸
For further information:
🔗 AdWeek
