With many large corporations losing millions of dollars each month, one popular reaction has been to cut down on the money earmarked for marketing. However, many experts are wondering how smart that move is when considering its long-term effects.
Sure, spending more on money can help you save money today. But down the line, a company could hurt its potential growth (or re-growth). If you think about it, there is a reason why companies have been spending billions of dollars in marketing.
Another example of this practice can be found by looking at American Express. Due to being in the struggling financial industry, they’ve needed to find ways to stay afloat. One of their solutions has been to cut down on marketing. According to numerous reports, American Express reduced their marketing in the second quarter by about 50% — or more than $300 million.
Bart Narter, who is with research firm Celent, put it nicely when talking to Bloomberg News.
Said Narter: “You can cheat your brand for a little bit and not lose, but do it for too long and people start forgetting about you.”
Being forgotten will hurt your business much more than this current economy.
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