News and Information We’d Like You to Know
A recession may mean budget cuts - your competitor’s marketing budget may be slashed along with their brand awareness and market share. You shouldn’t fear the “R” word. Take this as an opportunity to maintain your market share while your competitors are losing theirs. Better yet - grow your market share – you can do it for a bargain now!
Ad costs are dropping. Media companies are extending special offers and negotiations can be more profitable than ever for you. This is the perfect time to build your market share at a lower cost. Consumers don’t go away during a recession; they spend more conservatively and they look for great deals and coupons. Can you take this opportunity to encourage brand switching to your cost-saving alternative? Can you be top-of-mind for their purchase decision? Sears stole the market from Wards during World War II, Kellogg beat Post during the depression and Taco Bell and Pizza Hut grabbed the share from McDonald’s during the ’90-‘91 recession.
Major studies conclude that continuing with a marketing budget and plan equal to or greater than pre-recession levels produces the best results. Almost without exception, sales and profits dropped at companies that cut back on advertising. Even after the recession was over, some companies that cut marketing budgets continued to fall behind the ones that had maintained theirs.
In a recession, it is important not only to maintain or increase your marketing budget; you will also need to spend it wisely. Research your customer and spend smarter. Who are your best customers? Your current customers. Now is the time to keep in touch with them, perhaps develop a customer appreciation loyalty program. Maintain continuity to sustain awareness - don’t cut back on frequency. Additionally, step up public relations efforts to maintain a media presence.
At this point, it is unknown whether or not we will have a full-blown “Recession 2008.” However, be prepared with an aggressive marketing strategy because when the economy is good, advertising is important. When the economy is bad, advertising is essential and can really make (or break) your business!