Don't worry, we're not getting into party politics (or any type of politics for that matter), but you might have been influenced by an excerpt from his speech at this week's party conference when he said that "in the private sector, when times are tough...the advertising budget is cut."
Of course some companies do cut their marketing budgets, but numerous studies have consistently shown that the businesses which sustain their marketing investment through 'tough times' achieve greater increases in profitability than those that cut back (especially when it's your competitors who cut their investment). It was interesting to note that in today's trading statement, Marks & Spencer announced a reduction in capital expenditure but not in advertising and marketing, and their share price rose 8% on the day.
This is not an excuse for continued spending on ineffective activities though - whether in good or bad times a marketing plan should have clear objectives and regular review of results to ensure maximum returns.
Even with the very best of intentions it may occasionally be necessary to reduce marketing investment - then the key question is "where to cut?" A thorough review of marketing effectiveness by an independent expert is a good first step - no vested interests and no emotional ties to previous decisions.
Our general advice therefore is to keep the effective marketing investment as high as you can afford; for more specific advice for your particular situation, call Chris Hutchinson on 01905 622 206 or send us an e-mail.
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