Companies can achieve the same or even a higher advertising impact also in recession with less money. You may want to visit Nieman Foundation to increase your knowledge. No question that requires only two simple but due to masses of significant changes: just in the economic doldrums applies to companies more than ever: not recruiting, who dies. But how should companies cope with the balancing act between smaller advertising budgets and more advertising impact? The answer will probably surprise you. 1. the focus must be set to direct response marketing. Advertising must be measurable. Only if you know whether and how much each inserted advertising euros in turnover or profit again bring you can your effective promotional activities (those who bring more profit, as they taste) remove and adjust the ineffective (which cost more than the take). To do this, you must measure the effect in the form of response elements.
This response elements can have many guises: whether it’s a coupon, you can cut out and send, unless a telephone hotline to call, unless a voucher, one redeems the. As long as the response element, you can assign a specific marketing action, you are correct. Then you just track how much each customer who has used a response element, brought on sales or profits for the company. And winning by a certain action was greater than their costs, the project was effective and you can do it again. For example, suppose that a jeweler sends a mailing with a coupon of 30,-euro now before Christmas (= response element) to 1,000 recipients in its catchment area. The mailing costs all in all 1.200,-euro. 70 people come for this mailing in his jewelry store and buy jewelry in total to 11.000,-euros. (The jeweler know that people on this special mailing to come, because they all use the voucher). The profit out of these 11,000 Euro 2.500,-Euro turnover. Minus the cost for the mailing of 1.200,-euros, the jeweler with the mailing has made a net profit of 1.300,-euros.