While cutting costs in a sluggish market is always prudent, the "reactor" tends to apply the policy to the most cash intensive and possibly least quantifiable in terms of dollars such as training, continuing education, public relations and marketing and advertising. While the first three can probably be put on the back burner temporarily, marketing your business never should be regardless how depressed the economy.

Remember regardless what product or service you offer, your business is marketing. And ceasing to market your business is tantamount to closing your doors. So if reducing costs by cutting your marketing budget is not an option what should you do?

Respond to the market. And responding comes in two forms. One is to identify and eliminate wasteful marketing and advertising activities.  The other is to exploit the situation before it has time to correct itself. Let's take a look at the second one first. If you're currently advertising in print, radio, television or all three you need to perform a media contract audit. Not unlike many other industries the media is scampering for sales revenue.

Since many business owners are reacting and are cutting their own marketing and advertising budgets many media outlets are struggling and they are slashing prices on advertising inventory. Unlike many construction related products, air time has no shelf life. Once the day has passed that day's potential ad revenue can never be recovered. 

Take the time to review all your ad agreements. If they are close to expiring renegotiate and don't be shy about offering half of what you normally pay. If the contract is still in force it may be time to buy more advertising at a substantially reduced rate. Investment advisors call this "share cost averaging". That is buying more ads at a substantial discount that in turn dilutes the original amount of money spent making unit cost of individual ads less expensive overall. If you are paying for TV or radio ask for complimentary banner ads and trailers. It's not uncommon for a station to give away hundreds of these 10 and 15 second ads to existing clients.