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Why You Shouldn’t Cut Your Marketing Budget and Opt for Small Business Postcards

April 4, 2020

Filed under: Uncategorized — strategicmarketingdesigns @ 6:52 pm

chart showing recession for small businesses

Although the world has not seen a health situation like this one, the United States has weathered many troubled economic times before, and at some point, hopefully sooner rather than later, the COVID-19 pandemic will come to a close. However, with the threat of this virus, small businesses around the country have had to close their doors—some of them permanently, unfortunately. How can you make sure that your small business survives this downturn in the economy? Whatever you do, don’t try to save costs by cutting your marketing budget! Small business postcards and other marketing tools can help your business succeed.

The Proven Value of Marketing

In the past, companies who have cut their marketing budgets have suffered the consequences. For example, during the recession of 1990 to 1991, McDonald’s reduced its marketing budget, and sales fell by 28 percent. In contrast, Pizza Hut and Taco Bell maintained their marketing efforts as usual, and their sales grew by 61 and 40 percent respectively.

In the 1920s, Post was the number one cereal manufacturer, but when the Great Depression came, they cut back significantly on advertising, but Kellogg’s doubled their advertising efforts. In the years that followed, Kellogg’s increased in profits by 30 percent.

Overcoming the Urge to Cut Your Marketing Budget

When you’re in a pinch, your first instinct is to cut costs. In some cases, this tactic can seem very beneficial, especially in the short term. However, when it comes to your marketing budget, cuts can cripple your business in the long term. Even if you think that people aren’t spending money during this economic downturn, it’s important to stay connected with your target clientele with simple, yet effective marketing strategies.

Reasons to Spend Money on Marketing


If you think about it, there are actually several reasons to at least maintain your current advertising budget throughout an economic recession. Everyone’s first reaction is to cut costs, which means that while your competitors are pulling back, you could stand out and reach more consumers. As a result, when the economy recovers, your business is what people remember and to turn to for services or products.

Plus, it doesn’t take much in terms of resources these days to get your company’s brand and message in front of potential clients. In the big picture, your marketing budget pales in comparison to the return on investment that you could gain from attracting customers to your business.

Although spending money on advertising may initially feel like a huge risk, it has yielded results in the past and is a smart business marketing practice moving forward. By maintaining or even increasing your marketing budget, especially with postcards, your business has the chance to grow significantly during and after COVID-19 passes.

About Strategic Marketing Solutions

Strategic Marketing Solutions is a full-service marketing company that specifically caters to small businesses. Founder Travis Russell has many years of marketing experience for businesses ranging from dental practices to law firms and everything in between. If you have questions about marketing during economic downturns or if you would like to work with Strategic Marketing Solutions, you can contact us by clicking here.

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