Today's Economy
Has your budget been cut yet?
So, the economy is not doing well - from total depression to a slight recession to whomever you are speaking too - but, there is a money crunch out there and consumers are looking at their dollars a bit differently today then they were three years ago.
Which gets to the point of this posting. Companies, large and small (mostly large though), start looking at how their dollars are spent and the first place that the executives (and board) look at is Marketing. As discussed in previous postings, marketing is the hardest area to show a ROI - how can your PR activities be turned into a dollar value? How can a TV advertisement show an increase in revenue? Yes, both of these activities can be "turned into" a ROI chart, showing how many people saw the advertisement or read the story in the magazine. Yes, you may see a spike in sales after a release is published or an advertisement runs, but, when compared to sales, it is hard to justify.
Why wouldn't a company put their limited budgets into sales rather then marketing? It sounds like the correct thing to do.
But, don't you agree that the ceasing of building your brand, of advertising your new product, of introducing the new product to the world could (and probably would) affect the long term sales of your product or building of your brand? It really isn't a "probably", it is a fact. How many companies seem to "disappear" during times like this? And then, when the economy comes back, they "reappear"? But, instead of being ten steps ahead, they are all the way back at the beginning again.
Yes, if your company is financially strapped, then, you have to cut budgets - but, marketing is what tells people what to buy, where sales shows what to buy. One is displayed at a non-retail place where the other is only shown at a retail location.
Think of it this way - with the economy being this way, people don't just "go" to a retail establishment anymore to "shop" - they go because something has "pushed" them there - and that "push" comes from marketing, not sales.
Good luck.