It’s safe to consider the previous years as having contributed to the economic downturn of many businesses. Yours may not have been spared from that fact, too. And, like any other business, one of the most common responses to those economic and financial difficulties is cost-cutting. But, before you go all out with this, take a few steps to pause first. You can cut down on other expenses for this year, just not with your marketing.
The marketing budget is one of the most important expenditures of a business. However, despite that fact, it’s also one of those which are cut the most. Rather than take this approach, for 2022, your business should aim to increase the marketing budget, as a matter of priority. As you read through below, you can enrich your mind with insights on how you can increase your marketing budget. You should click here for more information, then proceed below with these four key reasons.
1. It Enables You To Go Beyond The Competition
If you decrease your marketing budget, you’re inevitably allowing your competition to get ahead of you. In which case, it should be the other way around, you should be aggressive in finding ways to be ahead of everybody else. That said, with more marketing money to spend, you’ll have more leeway to come up with other marketing strategies that you think would work efficiently and boost your revenue.
For instance, great ideas like implementing an SEO marketing campaign to gain more traffic from search engines or a customer loyalty program, wherein you can reward loyal customers with gifts or special discount codes. Strategies like this may cost a part of your overhead expenses but the returns that they may yield will surely help your business thrive faster.
Customer loyalty programs are mutually beneficial for you and your customers. Everyone likes the feeling of being valued, in turn it inspires them to purchase more.
2. It Gives You An Excess Share Of Voice
In marketing, there’s a metric known as an excess share of voice. This refers to the proportion of advertising you contribute to your specific business niche. When your share of voice goes beyond your current market share, that’s when you can say that you’ve achieved an excess share of voice. This is a fancy way of simply saying your business is talking louder than the guy next to you.
For example, say you’ve got a market share of 40% in the local beauty products industry. But, even higher than that, your share of voice is at a whopping 50%. This means you have 10% excess share of voice. It dictates that you’re able to reach out to an additional 10%, way beyond your current market. That’s a good thing for your business.
To achieve an excess share of voice, having an adequate marketing budget is a must. That way, you don’t have to limit your marketing strategies.
3. It Heightens Your Sales Growth
The better you are at marketing, the more traffic you’ll be able to drive towards your business. Like a domino effect, your sales potential increases as well. This is the reason why it’s almost safe to conclude that with the right marketing strategies, whatever amount was spent on increasing marketing campaigns translates to higher returns.
The challenging times in previous years may have undoubtedly slowed down your sales. Nevertheless, you can increase your sales by focusing more on effective marketing campaigns. Increasing your budget will be a good start in further improving your marketing efforts.
4. It Sets The Image Of A Strong Corporate Stability
When you cut your marketing budget, this means the strategies you apply will also be affected. Chances are, those changes are going to be visible to your audience. Unfortunately, those changes are going to convey the wrong message to your customers. It’s going to affect your professionalism and your image with the general public.
By doing this, it may prove that you’re experiencing corporate instability. This isn’t what you’ll want for your business. No matter how hard your business may be struggling, don’t let the public change their perception of you. The more professional your image stays, the better it will be to help your business get back on track in 2022.
After you’ve reviewed your business’ finances, you’ll surely come across some areas which you’d think are a sound, financial move to cut down on certain expenses. Whatever other expenses you cut back on, don’t make the marketing budget a part of that list. In fact, the opposite should hold true, rather than cut down your costs for marketing, you should look for more ways to increase them. The reasons enumerated above should be convincing enough that when you increase your marketing budget, you’re opening your business to broader opportunities in marketing that’ll help your business thrive this year.
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