This is a very real problem that happens all the time. Sometimes companies are so strapped for cash that they have to cut their marketing to try to save money. This can come in the form of lower advertising rates, smaller sales budgets, or no advertising at all.
We’re talking about a lot of these things here. A few years ago, we did a study on a company called Wunderman. The company’s marketing department had dropped its advertising budget in half and had lost a lot of sales and a lot of marketing support to the new owners. This is a problem that’s been happening to a company called Interpace for years. They have to cut their marketing to try to save money.
There are quite a few companies out there that do this. Wunderman and Interpace are two of the more common examples. All of these companies have to cut their marketing. It’s a cost savings decision, and a marketing cost containment decision.
A company that wants to cut their marketing budget can do just about anything to make this happen. It can hire cheaper employees, or lower their advertising budget, or do without web traffic – or anything else.
Companies that keep their marketing budget low will find that their customers (and thus their stockholders) are more likely to pay high prices for their product. When a company increases their marketing budget, their stockholders will likely find that their products are cheaper because they are being marketed by cheaper employees. The end result is that the company’s stockholders will be more likely to back the company when they sell the stock.
This is a particularly common practice in the tech industry. For example, in Silicon Valley the company that develops the most expensive smartphone will often use a cheap employee to design the smartphone and to develop it. The result is that the company does not have to pay high prices for their product because they are marketing it by cheaper employees.
This is a common practice in the tech industry. It is why Apple and many other companies use cheaper employees that are not actually employees. The result is that Apple and many other companies have access to more customers because their customers will be able to buy more products. In some cases, they will be able to spend more on advertising because their customers will be able to buy more of their products.
What happens when the more expensive employees aren’t allowed to increase their marketing costs? Well, when the more expensive employees aren’t allowed to increase their marketing costs, they will just keep spending the same amount of money on marketing. In this case, the less expensive employees won’t be able to increase their marketing costs to spend more on advertising. This is a situation that happens to be especially common in the tech industry.
This happens when a company that has retained a product (from a marketing perspective) decides to cut back its marketing costs, not due to any real change in the market (although it should be obvious that such a decision does have a real cost to it’s marketing agency), but due to an increase in its marketing budget.
How much of a marketing budget reduction is necessary depends on the product’s value and how many people sell the product, and how much of a marketing budget reduction is appropriate for that product. In this case the company has decided to reduce the marketing budget, but the decision has been made without any real attempt to quantify the market size.