We are all aware of the absurd way in which marketing budgets are often allocated. When business is booming, the requested budgets tend to be approved. When business is difficult, the budgets are cut. Controllers argue that cost reductions are essential in difficult times. As a consequence, marketing budgets are slashed, because many still consider marketing to be a cost factor rather than an investment. Marketeers argue that marketing is a necessity in difficult times in order to boost demand and get business going again.

Nothing new so far.

But the absurdity goes further and that is the point I want to make: Why do marketeers spend the approved budgets in times when business is booming anyhow? Why does budget approval automatically lead to instant spending, i.e. within the financial year? A popular excuse is that if you don't spend the budget approved this year, you will get less next year. Unfortunately that is often true.

Wouldn't it be great, if marketing would be granted more budgetary responsibility? Marketing would then have the flexibility to put aside unneeded budgets in a boom year for upcoming difficult times. This would lead to more responsible, value-adding behavior in good years and in bad years.

By the way: Isn't that what we all try to do privately = Save in good times to get along in bad times?