We all know that the economy has not been ideal- that much is clear. But what boggles my mind is that when these barriers of entry are lowered(strong economies are costly for entrepreneurs to enter) – therefore INCREASING competition- why businesses think it is a good idea to get rid of its media, marketing and other communications? When you examine the objections, one can see that most of them are short-sighted, hasty conclusions that therefore negatively influence consumer confidence.
Objection 1: The activities do not directly influence our bottom line.
Interesting angle. Unfortunately public relations, and marketing are usually the casualties under this silly objection. If those activities didn’t directly influence your bottom line while the economy was good, why did you do it in the first place? The more a business’ name is out there, the more consumers think a business is doing well. People don’t want to buy from a car company that’s going bankrupt, so why in the WORLD would you want to give the consumer that perception? Of course it affects your bottom line. The less consumers see you, the less your business is in their consideration sets. And the less your business is in their consideration sets- that’s right- no business for you.
Objection 2: Let’s hunker down and weather the storm with our current clients.
Cutting your communications and focusing solely on current clients may help loosen up capital in the short run. What message (remember, it’s all about what you say and don’t say) are you sending to your current clients? Because of tough times you’re going to change your vision and forget expanding? People stop accepting your lunch invites so you stop expanding “to weather the storm?” How will your business help others if you’re scared to help yourself? Not the business I want to be a part of.
Objection 3:Too much capital tied up in other things; something else had to go.
Simple- when one refuses to plan ahead and have strategies set for tough times, capital can disappear quickly. Avoid that lapse by keeping reserve funds, or an emergency line of capital. Don’t cut your public relations or marketing. You want to build more capital to create an economies-of-scale to spread the costs and risks.
Those are the objections I have heard the most. If you have others that you’d like to chip in, along with your disspelling of it, please add!