With the economy in the current state, it is hard not to be thinking about where and how to cut corners in your business - whether that "corner-cutting" is entirely warranted or not. It pays to be prepared, but not if that preparation means that you actually are handicapping yourself or your business in the process. 

If you elect to reduce spending, make sure that you do so in a way that does not prevent you from making the best decisions at all times. In short, protect your marketing and your marketing research. Recently, I read an article by John Quelch on the Harvard Business Blog[1] that deals with how to minimize the effects of reduced spending while maximizing every dime. Here are some of the highlights that I found particularly useful.

· Do not lose your focus

Keep your advertising and your incentives focused on your loyal customers. While this is a good time to expand your market, you must not do so by neglecting the people who are sticking by you through the tough times. Isolate the markets that are most profitable, then focus your efforts there.

· Do not overlook the overseas option

In Europe, market research is simply more expensive and the payoff can be small. However, tracking trends in emerging economies is cheaper and the payoffs can be enormous. Cementing a brand preference in China or India, for example, may be worth diverting some money from more established (and currently suffering) economies.

· Be skeptical but practical when it comes to online research

Internet based research is cheap, fast and easy, but only effective if you know how to read it. The internet also makes providing inaccurate or incomplete data far easier for survey takers. Do not believe that something is true just because your new SurveyMonkey software says so. Make sure that if you are budgeting by using this software you have someone with the resources and experience to interpret the results correctly.

· Cut judiciously.

Just because you are saving money does not mean you need to cut corners everywhere. Make sure that you leave enough in the budget to keep your finger on the pulse of what your consumers need and how you can best provide those services.

· Remember the new consumer

While you cannot neglect your faithful "friends," you also must keep an eye on future changes in consumer behavior. Determine what consumer spending mechanisms will endure past the recession and which ones might escalate or change in order to react quickly when the recession ends.

No matter what your end goals for your business may be, you will find that promotional merchandise is one of the best ways to keep in touch with old clients and consumers and develop relationships with new ones. Promotional merchandise works constantly to expose everyone to your brand and helps to establish a presence in any market. If you are looking for a way to cut expenses without sacrificing your presence in your consumers' and your potential consumers' eyes, then promotion merchandise can play a critical role on your marketing team.

[1] http://blogs.harvardbusiness.org/quelch/2009/05/how_to_use_market_research_in.html