– By Andrew B Morris
When the spotlight falls on budgets it’s common practice – but not always common sense – to turn to cost-cutting and margin reduction as a short-term solution. The marketing budget is a common casualty of this misplaced thinking, especially those elements where results are harder to quantify. That often sees things like online and social media campaigns facing the axe, even though they actually underpin sales efforts and so help preserve the top line.
Andrew B Morris
Certainly review all costs and take out any fat or discretionary spend that isn’t justified. But we can’t continue to do this or we will have no business left.
Switch your focus to how the top line, revenue, can be maintained.
- Is the marketing plan fit for purpose, given the prevailing market conditions?
- Should we re-allocate spend to increase the marketing budget?
- Are the sales team up to task?
- Do they need additional support and resources?
- Can non-sales people help in any way?
- Are we close enough to our key customers? This is a time to really build relationships.
- Are all of our staff adequately briefed and ‘on message’? They are our best brand ambassadors.
Reducing your revenue expectations, as is often the case, sets us up to fail and makes it acceptable to preside over a reducing top line. Stick with your revenue budget and focus all your attention on ROI and how it can be achieved.
About Andrew Morris
Andrew is Chief Executive of the Academy for Chief Executives, helping businesses to accelerate growth through better leadership. As part of this role he chairs and mentors a group of exclusive central London Business Leaders in Academy Group 1.
Andrew describes himself as a creative businessman, who enjoys meeting people from all facets of life. His mantra is ‘take your job seriously, but not yourself.’
To find out more about membership to the Academy for Chief Executives contact us on: 0845 118 1028 or at: membership@chiefexecutive.com