7 Ways To Cut Marketing Costs
 By Terry M. Blair

During tough economic times, the first reaction of many small-business owners is to cut their marketing and advertising budgets in an effort to trim expenses.

But pulling back your marketing could result in fewer leads and sales.

How can you cut marketing costs without jeopardizing new business development – and still get the most results out of your marketing dollars? Try these seven ideas.

1. Ramp Up Your PR Efforts
You can implement public relations initiatives that cost little or no money. Newspaper articles or TV news coverage equates to free advertising for your business.

Start by publishing press releases about interesting developments at your business and distribute them to the local media. These might include new product introductions, new employees, local sponsorships and newsworthy company events.

You can also write bylined articles about trends and developments in your industry and submit them to industry trade publications. This helps position you as an expert in your field and may lead to inquiries from potential new customers.

2. Barter
Can you offer your products or services in exchange for free media placement?

For example, if you provide computer or IT consulting services, you could offer 10 hours of computer repair and upgrading services to a local magazine publisher in exchange for a display ad in several upcoming issues.

3. Publish An E-Newsletter
Unlike traditional print newsletters, which incur printing and postage costs, an electronic newsletter costs little beyond your own time.

Start by collecting the e-mail addresses of your customers and prospects and asking for permission to send them informative e-mail communications. Then send periodic e-mails (once or twice month) to your list.

Provide useful information about your industry and your particular areas of expertise, with a subtle message about how your company can help them.

4. Focus On Your Existing Customers
It costs much less to keep and market to the customers you already have than to try to attract new ones.

First, make sure you’re doing everything you can to ensure that your customers are satisfied.

Then look for opportunities to sell them more: to increase the quantity or frequency of their purchases, upgrade them to new and improved products, or sell them different products and services that may complement what they’re already buying from you.

Conduct periodic, impromptu surveys to ask customers how satisfied they are and if there are any other products or services you could provide that would meet their needs.

5. Take Advantage Of Word-Of-Mouth Advertising
Satisfied customers may be the best advertising you can get, and they don’t cost you a dime.

Ask your customers to refer you to their family, friends and business associates. Offer referral bonuses or discounts to them if their referrals result in new customers for you.

And don’t forget to thank your customers. A sincere “thank you for your business” goes a long way toward retaining customers and securing their referrals.

6. Look For Cross-Promotional Opportunities
Are there other companies that offer products and services that complement, but don’t compete with, yours? If so, perhaps you can team up on marketing efforts, share the costs and leverage sales between each other.

For example, maybe you can buy joint advertisements in newspapers and magazines or on radio and TV, or combine direct mail pieces to cut your mailing costs in half. Perhaps you could co-sponsor community events or local youth sports teams.

Or you could offer display and marketing space in each other’s retail establishments.

7. Reduce Ad Size And/Or Frequency
In print media, consider reducing the size of your ad without reducing frequency. This may help you save money without sacrificing results.

With broadcast media, consider reducing the frequency of ads or moving them to a less expensive time slot to save money.

In either case, work with the media’s advertising sales rep to determine which strategies will save the most money and result in the fewest lost sales leads.

(Posted August 2008)

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