Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

Faced With Marketing Budget Cuts? Here’s What To Do

Posted on: 19 January '10

How many of you have been asked to cut your marketing budget in the last 12 months? Or maybe the question should be “how many times?” Many peers I have talked to are on their 2nd or 3rd round of budget cuts since 2009, whether in the form of staff reduction or monetary cuts. Meanwhile, many of those same executives I’ve spoken to say sales expenses have remained steady; or have reported an increase in the number of sales resources.

The purpose of this blog is not to complain or lament our bad fortune as marketers. I feel there are many of us that are taking the opportunity to make smart choices and consequently becoming more efficient with our marketing strategies.

Select Targeted over Reach. To survive, marketers need to move away from marketing activities that are focused on very broad market segments to those that are targeted at narrower audiences such as role based, industry based or event account (client)-based. It makes sense: most of us recognize that cost-of-sales is lower to retain or grow a client versus finding a new client. All that is required, then, is to allocate more of your marketing dollars in that direction.

Offline to Online. Marketers have been cutting back on physical collateral, direct mail and events for years. Join the majority, and make 2010 the year that you accelerate online spending on channels such as search engine marketing, webinars, newsletters, and virtual events. In a Forrester Research report, “US Interactive Marketing Forecast, 2009 to 2014,” 60% of those surveyed will shift budget away from traditional marketing to interactive marketing in 2010. Interactive marketing will represent 21% ($55B) of all marketing spend in 2014. Read more…

Although be careful not to abandon offline marketing altogether. I read this week that direct mail usage in the US was down 27% in 2009, but that small and medium-size businesses ($250M-750M) have expressed to their partners that they are inundated with too much email and that they would actually prefer a return to more direct mail. So the message: pick your spots.

Outsource Marketing. We typically think of outsourcing IT or BPO work. But why not marketing? I bet you’d be surprised that companies are not just saving money by outsourcing non-core marketing activities, but also getting the same quality and productivity. That has been my experience: my entire MindTree marketing team sits in India and it works great. And my offshore team is responsible for the tactical and the strategic.

What are you doing when asked to trim marketing spend? I would love to hear from you.

  • Vijay. M

    Hi Joe,

    Working on a tight budget is always a challenge and it should be tackled effectively. So carrying out the right tasks to gain the maximum benefits is a crucial factor during these times.

    Marketing activities have to be selected effectively and each activity should be carried out efficiently, which is easier said that done. Following a set of best practices in marketing can lead to optimized cost management.

    Regards, Vijay

  • S.R.Dinesh

    Hi Joe,

    Cost savings might not be the benefit that always one gets from outsourcing marketing activities but it would be to get experts in a specific field. But you are right about outsourcing non-core marketing activities.

    Marketers core job is to understand markets, drive appropriate solutions for the segments and leave the rest to the marketing services companies. But it is easier said than done as organizations at different phases of marketing adoption will have its own marketing readiness. My experience is that if one forces strategic marketing intent on the organization when the marketing function is new and requires tactical marketing, it might backfire.

    All marketers should attempt at drawing up a marketing readiness index (MRI) for their organization based on certain factors to assess what marketing support does an organization require.

    Having said that it should always be the endeavor of the marketing team to move the organizations mindset towards strategic marketing and that’s my focus in my company. 🙂

  • Vijay:

    I agee…nobody said it would be easier. But you are right, it puts the emphasis on doing the right things to maximize your ROI.

    Joe