Archive for the ‘Reducing Costs’ Category
Many marketers have been feeling the strain this year as their budgets and resources have come under increased pressure and increased scrutiny from senior management. But achieving more with less is not impossible, and can actually have some positive effects…
Budget cuts and recessionary demands have resulted in more businesses focusing on marketing accountability and measurement, as well as improved collaboration between marketing and other organizational departments (i.e. finance), according to the fifth annual Marketing Accountability Survey.
The Association of National Advertisers (ANA) and Marketing Management Analytics (MMA) study spoke to 95 senior-level marketers over the summer. Although the small sample size should be noted, some interesting findings include:
Almost half (46%) of respondents are satisfied with the impact of their marketing efforts on sales/ROI, twice as high a response as last year. The survey also highlighted a greater appreciation of marketing efforts by senior management.
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In the latest Marketing magazine e-newsletter, bringing us up to date with the top marketing stories from the U.K. and around the world, two stories caught the eye. They focused on two very different industries – food & drink and airlines respectively – but shared a common theme.
In the first article, we were told that Mars and Snickers have reduced the size of their chocolate bars, while retaining the same prices. Both have shrunk 7.2% (from 62.5g to 58g), but a Mars bar will still retail for 37p and a Snickers remains at 41p.
Nobody is denying that many major corporations are under pressure at the moment. In fact, Ryanair last week reported its first loss for 20 years. But this low-cost airline could easily have decided to increase the price of all its tickets by just a couple of pounds without most customers noticing; instead it has chosen a controversial move which has caused uproar, will deter some customers from even considering flying with the airline in future, and does not position the company particularly favourably. Similarly, the Mars/Snickers strategy is being put in place to help these brands absorb the rising commodity costs they are facing, but their competitors are facing the same challenges and, as yet, have not resorted to such seemingly drastic measures.
Never forget how important your customers are. However tough the environment might be for you, things will be just as bad – if not worse – for your customers.
Certainly nobody wants to feel they are getting less for more – or even less for the same price – especially at the present time. The most successful companies when this recession ends will be those who have continued to research, understand and satisfy the needs of their customers. This may not mean offering your product at a cut price, but it almost certainly will mean offering value for money.