Cutting Down Marketing Costs For Medium Enterprises

 

 

A Copy of This Article was publishes in the Buzzle Website

 

There is considerable pressure to reduce cost in sales and marketing. But how to cut sales costs without shooting oneself into the foot?

 

In times of a tough and difficult economy any business owner needs to keep a track on his expenses in spite of results showing strong sales, simply because escalating costs can eat into profits within no time. Much too often business owners grow frustrated with weak sales and rising costs only to make fatal mistakes while cutting costs. Some of these decisions are, firing or reducing the sales team, cutting down on the marketing budget or eliminating systems or technology that increase operational efficiency. Provided an entrepreneur stays away from such fatal decisions he/she can adopt some of these cost cutting ideas that will surely boost his cash flow and enhance the overall health of the business.

I did a bit of research and came up with a number of effective cost cutting measures  to be used by  small/medium enterprises in their marketing strategies.

 

1. Assess Company Finances: One of the first cost cutting ideas in the office is to prepare a detailed record of the expenses. Prepare a per month or quarterly income and expenses report that will include all details of what are the needs of the enterprise, how much is currently being spent, how much is the budget allocated for every section, and how much can be saved. This gives a general idea as to which all areas should be considered for cost cutting.

2. Work Intensity: Ensure that sales people are actually visiting clients selling to them, instead of sitting in the office doing administration, powerpoint, brochures, calculations or a myriad other things that holds them away from the prospect.

 

3. Cut Administrative Expenses:
Administrative costs also have a major part in the increase of the enterprise's operation costs. Instead of purchasing equipment and tools, a better cost control method is to take them on rent. If one wants to buy equipment, getting used but operational ones is a good idea to save on costs. In buying office equipment, opt for good equipment with discount or search for a purchasing partner. Make sure that company employees use the office equipment to its fullest and do not waste any. Ensure that employees do not use office phones for personal purposes. Use electricity only if it is absolutely required. Make sure everything that is purchased is used in the best possible manner.

 

4. Review Marketing Strategies and Plans:
As marketing is a vital part of any business, a lot of finances is spend on it. Get the details of all marketing strategies and programs that are not giving good results. Reinvent those marketing plans and relaunch them in a new and effective manner. If possible, one can even eliminate such ineffective and cost-consuming programs. Instead of spending much on advertising and marketing, one can use the records and clients' references to draw in more business. Eliminating unnecessary marketing will surely reduce the company costs substantially.

5. Split Defense & Offense: Like in football, make a division between routine & new/special sales work. Focus all in-bound, routine selling & customer service work in an internal sales team working on the phone. On the offensive side build and train a strong field sales team that is out and about, winning new accounts and negotiating tough problems and contracts.

 

6. Speed Up the Sales Cycle: Many default visits are not needed and even not wished by the client. Ensure every call and presentation delivers on the closing of the contract. Cut the "nice to meet" events and deliver real value each time your client is talking with your people