If marketing is an investment, can you time the market?

Advertising and marketing is an investment in your business. Like most investors most business owners and professionals try to time the market. Problem is, most are timing it all wrong.

When times are good and the economy is rolling, businesses will throw money left and right at any marketing opportunity that comes across their desk. Then when times get lean they cut back their marketing spend dramatically. Makes sense right?

Actually it does not make sense. This is the opposite approach that experts will recommend. Most experts agree your marketing spend should be highest when business is down. When your business is rolling you should be conservative with your marketing and advertising efforts, stick with what works and pick the low lying fruit. In the meantime increase your businesses reserve funds for leaner times. When the economy is on a downturn or your business has slowed down, that is when you want to increase your marketing spend, even if it does not pay off in the short term. This approach is similar to dollar cost averaging where you contribute a little each and every month regardless of the market to balance out the ups and downs.

I attended a conference with Donald Trump as the keynote speaker. His message was to do the opposite of what everyone else is doing. When everyone else is selling off stocks, you should buy. When everyone is afriad to buy real estate, you should buy. When your competitors cut back their advertising, you should spend!

• If you are consistently advertising in one forum or another and you stop, some consumers will wonder whether or not you are still in business. 
• When business is rolling you do not need to overdue the advertising and marketing but rather focus on systems, customer satisfactoin and referrals. But, continue with what works.
• When business is down this is when you need to spend more on marketing to increase lead generation. Look to embrace new technologies or forums but keep consistent with what works.
• Track and measure your results. Monitor cost per impression.
• When times are slow, look to increase market share. This is when your competitors will cut back and you can stand out.

Sometimes this is easier said than done. For instance, maybe you are a newer business and you do not have reserves to tap into for advertising. Or maybe you have been doing it right and you have run out of reserves. But if you make a conscious effort to follow this formula then you will find you will be more successful than your competitors.