Why marketing programs get deep cuts

Most managers perceive certain costs as unavoidable (fixed) and others as avoidable if there is not justification (sales, for instance) for their existence. 

What does this mean for marketers?  Marketing falls into both categories.  Fixed marketing costs include the salaries, property, offices, equipment, etc., of the marketing department.  Variable costs include marketing campaigns, media spend, activation at events, etc., that the marketing department is budgeted for and controls.  This is a very important point – most of what marketing departments do (their output, not their existence) is explained to management in French!  When senior managers hear “French” they have little hesitation to cut those costs – as they don’t see the direct connection to sales revenue.  This is why marketing usually gets the first and deepest cuts in times of difficulty!

Senior management that is interested in maximizing the Profits of an organization thus can either increase revenue or reduce costs.  With the widespread disconnect between marketing spending and direct known sales/revenue impact, marketing is prime “fat” for trimming when this equation is parsed and put into optimal deployment!