Recommend
Print

Sales and marketing

Act when your rivals cut back on marketing

By Taskmaster
Friday, 02 March 2012

Taskmaster

This article first appeared October 13, 2011.

 

Last night I was listening to a retailer talk about how he is travelling through the downturn. Having faced the 1989 recession, this retailer was very relaxed – he’d been down to his last dollar after that downturn and was in a much more comfortable position this time around.

 

Here is an entrepreneur who has learned the hard lessons – ensure your cashflow is always protected, ensure growth is profitable and simplify your business as much as possible.

 

He clearly keeps a close eye on costs, but there is one expense line he will never touch – marketing.

 

Each and every year, no matter what the economic conditions, he spends 6% of his turnover on advertising and marketing initiatives.

 

When economic conditions deteriorate, he’s especially careful to ensure the marketing budget is untouched – his competitors will almost invariably cut back on their marketing and when they do he goes on the front foot to grab an even bigger share of the marketing “voice” in his sector.

 

It’s a great lesson. Start-ups are often tempted to keep marketing costs to a minimum, but increasing or holding marketing spending when your rivals cut back can help you seize market share from them.

 

Watch for this moment and take the opportunity.

 

Get it done – today!

Did you like this article? 

Sign up to the StartupSmart Newsletter to receive a daily news wrap-up straight to your inbox AND a free eBook!

Invalid Input

Comments (0)

Subscribe to this comment's feed

Write comment

smaller | bigger

busy
Invalid Input
 

Follow us

StartupSmart on Twitter StartupSmart on Facebook StartupSmart on LinkedIn StartupSmart on Google+ StartupSmart on Youtube

Subscribe to StartupSmart RSS feeds

Events


  • Me and My Mentor
      The story begins: A brave woman starts her own business...   She wants to be her own boss, set her own salary and experience the rewards of financial f...

  • Networking Bondi - Servcorp Business Shorts
    If you're up for a FREE evening of learning, networking, canapes and drinks then you'll love this Business Shorts event in Bondi SydneyRegister:...

  • Angel Dinner Call for Video Submissions
    If you're an entrepreneur in the high-tech space and your business is looking for funding, you might be interested in pitching at this event, held at Table...

  • Digital Leader
    Digital leaders are made, not born. And you too have it within you to become an effective digital leader. As a leader in the digital age, your reach is...

  • Little Black Dress Conference
    Building An Empire | Power of Brand YOU. I'm talking with 3 other fab ladies. Love to see you there. ...

Sponsored Links

Our Partners

 

Private Media Publications

Crikey

loading...

Crikey Blogs

loading...

Smart Company

loading...

Property Observer

loading...

Leading Company

loading...