Globally Boundless

Globally Boundless

November 12, 2008 09:30 ET

Globally Boundless: How to Cut Your Marketing Budget Without Cutting Your Throat

PORT MOODY, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2008) - The current North American market crisis has companies slashing marketing initiatives at unprecedented rates. What companies forget is that when they cut marketing to cut costs, essentially they may be cutting their throat. Globally Boundless, a 35 year-old direct marketing communication company, is helping their clients weather the financial storm by providing critical advice on how to responsibly cut their marketing without putting themselves out of business.

"For the first time ever we are seeing a systemic annihilation of marketing budgets," says Brad Liski, Executive Vice President, Global Sales. "Over the past few weeks we have received hundreds of calls from companies looking for advice on "what to do", the true winners will be those who are able to throttle back on specific tactics, see reactions, results, and readjust their budget."

Throttle Down

Companies need to immediately throttle down on all marketing activities. The current economic situation must be reacted to and cutting back is necessary. Throttle down on all activities equally, but DO NOT eliminate any single activity until you know how the consumer will react to the crisis within the next 90 days. Be sure you are able to understand the impact of a throttle down though. This requires patience and full understanding of each activity.

Metrics are the Name of the Game

During poor economic times, metrics are the name of the game. Companies should be able to clearly define and have a per-tactic spend of your marketing dollars. If you don't know exactly how much you are spending on each individual marketing tactic, you will not be able to clearly define where you can immediately increase or decrease spending.

Response Analysis

Companies need to immediately complete a response analysis and return on investment calculation on anything that is measurable. Without this information you could very easily cut the only thing that is bringing you customers. Response analysis compares responses to specific marketing activity in a geographic or demographic area. From there, produce a Return on Investment statement, this compares actual sales to a specific marketing activity in a geographic or demographic area. Both are critical to success in determining marketing spend efficiency.

The Dashboard

Immediately put a dashboard in place to measure marketing material effectiveness. If you cannot afford a technical dashboard, create your own. Develop a spreadsheet to monitor responses. Help your employees understand the importance of tracking results. If budget does permit, put all marketing efforts into one real-time dashboard. The dashboard will help you understand if your marketing dollars are actually doing anything, and it will also help you understand how the consumer is reacting to your company in these new market conditions.

Real-time Reaction

As your measurements come in, throttle up on tactics that are working and throttle down on those that aren't. But be cautious. Again patience is necessary and an understanding of when specific activities are being seen. Reacting swiftly and in a timely manner is very important. Also, do not completely eliminate initiatives that are not currently working. Throttle it down more because if you abandon all tactics but the one that works, you will inevitably end in failure.

About Globally Boundless

Globally Boundless is a direct marketing communication company specializing in targeted marketing strategies. With over 35 years of experience Globally Boundless has complete fully-integrated in house services including Marketing, PreMedia, e-Services, Data List Management, E-mail Marketing, Variable and Static Printing, Direct Mail, Inventory Management and Fulfillment and Response Analysis technologies.

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