Marketing in the recession
“It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”
John Quelch, Professor, Harvard Business School
“In the boom times, just being there guarantees some level of business, in the busts you have to fight tooth and nail for your share of the pie. The key to success is a strong focus on product marketing, honing the deliverables and getting the message out to the market.”
Malcolm Penn, Semiconductor Industry Analyst
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When many companies are cutting back on their marketing expenses, the clever few are going strong. As most brands silence their voice in the world, there are unprecedented opportunities for those who don’t cut their budgets.
Instead of just stopping your marketing efforts, take time to investigate the changes that are happening in your market at this moment. Adjust your budget but make sure you keep true to your brand and its position you have worked so hard to achieve.
At a time where customers are pickier, take time to research and are more likely to walk away from a sale, those companies who do not adapt their marketing practices will suffer in the long term.
1. Research your customer
What motivates them today? What values do they now have? What sales approach will they now appreciate? What factors contribute to them walking away from a sale?
2. Give your customer a reason to stick with your brand
Carefully outline the benefits staying with your brand will have to your customer. Make sure you reiterate that you share the same values, have the same hopes and long for the same outcome as they do.
3. Maintain marketing activities
Now is the best time to evaluate which channels in your marketing efforts are in fact most effective. Since the values of your customer have shifted, their behaviour has also shifted; therefore your behaviour must shift.
4. Stay true to your brand
If you quickly start trading in the lower priced market you will hurt your brand in the long term. Brands take years to build so carefully evaluate the steps you intend to take, with a close regard to your long term goals.
