Right now a number of you are getting this pressure:
"Marketing spends more money than any other department, they have the most room to cut budget."
How might you respond to that? Here's one suggestion:
ROI is really what matters most at budget review time. Marketing is one of the few departments that can actually point to the contributions they make directly to the bottom line. There is a proven cause-and-effect relationship between sales returns and marketing spends for larger and enterprise-size firms.
Cutting the marketing budget only reduces the opportunities available to build market share, boost product awareness and preference in the mind of the consumer, and dampens profitability in the long run.
The IT department might yield long-term benefits, but better servers don't often move more product. Increased discounting might buy us some time but creates problems in the long run.
Let's not review expenditure budgets on a line by line basis. Let's establish where the value is created in the business and invest in those activities and eliminate or reduce those that don't.
Contact me if you need more on this subject.
CHEERS!
Rob Bree
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