Why is marketing budget the last thing your company should cut?

mariakhatun

There has been a lot of talk about the economic crisis that Brazil is facing. But, in fact, this is not the first time that we are facing a moment of caution and time to reevaluate investment priorities, as well as evaluate opportunities for cost reduction and/or efficiency gains. However, before putting the brakes on and cutting costs, it is necessary to remember that the crisis will not last forever and those who overcome this most critical period will have an advantage when their current competitors are unable to withstand the crisis. At this moment, cautious and well-structured planning will give you the necessary inputs to resume growth after this darkest phase. Cautious here means knowing how to look at actions, pointing out the differences between costs and investments. Let's see: How can you reduce costs by knowing how to differentiate the important projects underway in your company? How can you not prevent cost containment actions from helping in the present but not impacting your plans for the future.

First, it is important to draw an overview of everything WhatsApp Number List  you do today, what is your mix of products/services, how many employees are dedicated to the production and sale of each one, your structure for this, what are your direct expenses and what revenue you generate. each product/service brings you. Evaluate the current and future market for each of these products/services. With this, analyze the profitability of each product line and project in the short term. Having these results on paper can safely conclude where there are opportunities or where it is time to restructure the entire area and line of products or services offered. A second important point is to optimize processes, as only in this way can your company gain growth scale, without increasing costs or even reducing them. Therefore, evaluate what is done in your company today and what could be done in a different, more agile way. Today there is management software for the most diverse areas of a company, reducing the time your employee will need to complete a certain task, combining the efforts of different areas and thus increasing productivity and reducing costs.



But sometimes additional investments are not even necessary, a simple simplification of the process, reevaluation of responsibilities in a certain area or consolidation of activities will also be beneficial for reducing costs. Thirdly, reevaluate your costs with suppliers of raw materials, other products and services in general. Talk to suppliers to renegotiate their contracts. Of course, the quality of the product/service must be maintained in the first place, but in many cases we use the same suppliers or products because we are already used to them, because they were selected in an analysis in the past. Revisit the studies and open new competition between them. Some may have accommodated themselves, or, often, new suppliers with different prices may have entered the market. Finally, create a perception of the importance of these actions among your employees. Have superiors discuss these ideas with their team. Listen to their suggestions for possible cost reductions. Also analyze the actions taken by competitors. All of this can open your eyes to opportunities for good gains via cost reduction.