Marketing Pruning...

Prune branches, not roots

In outdoor gardening, you prune branches to encourage growth. In Bonsai gardening, you prune roots to stunt growth. The same works in business.

Dot-coms profited more by cutting operating costs vs. marketing costs, says a recent study by turnaround consulting firm Getzler & Company Inc. Of 190 firms studied, 46 cut marketing and 25 cut operating costs.

"While sales growth among the two groups remained approximately the same, there was a dramatic difference in profitability," said Brian Mittman, V.P. at Getzler. From second to third quarter, losses more than doubled at firms that cut marketing.

In my experience, the same is true in the traditional marketplace. Clients who cut marketing have been forced to lower their prices -- and profits, to keep sales. But clients who trimmed operating costs maintained or increased sales while staying profitable. It seems marketing is a lot like a plant’s root.

- Phil Sasso