Companies ‘should not cut down on marketing’

These days, marketing efforts by companies are varied and they can include such things as booklet printing and magazine printing.
Of course, there is also the issue of online advertising to deal with and it is vital that businesses have good websites for consumers to visit.

Of course, there is also the issue of online advertising to deal with and it is vital that businesses have good websites for consumers to visit.

However, because of the economic problems seen around the globe over recent months and years, some enterprises have been cutting back on their marketing budgets in a bid to reduce their expenditure.

In one sense, this is simply being frugal, as it does mean that in the short term, costs fall.

However, many experts believe that this approach to booklet printing, magazine printing and other such forms of advertising is unwise.

Among these individuals is Rene Rodriguez from MortgageDashboard, who suggested that cutting back on marketing will mean firms lose their market share.

Writing in the National Mortgage Professional Magazine, he stated: “An unfortunate common practice for companies at the onset of a poor economy is to begin cutting operating costs.

“Even more unfortunate is the fact that marketing budgets are often the prime targets of those cuts. It has been proven time and time again that it’s not a good idea to reduce marketing efforts during a recession.”

According to Mr Rodriguez, while this saves cash in the short term, it leaves brands in a less competitive position when the economy recovers.

In fact what firms should do is increase their marketing efforts during times of market strife, he went on to suggest.

He commented: “Research has confirmed that the best strategy in terms of long-term return on investment is to increase marketing efforts during an economic slowdown.”

The global outlook regarding financial matters is by no means certain at present and some nations appear at risk of sliding back into financial difficulties.

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