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Marketing in a Down Economy
Probably one of the first questions both small and large business owners and managers ask when an economic downturn hits is: where can I cut costs?
In a down economy, that's a smart question. Experts on Wall Street
and Main Street can afford the time to debate if we are even in a recession,
but savvy business folks look at their own bottom line for the truth.
When the news is bad, it ramps up fears and causes knee-jerk reactions
to batten down their business hatches. Often they cut spending by laying
people off, reducing orders, stopping all training, and greatly reducing
marketing activities. In nearly all businesses, these are the most common
ways to get ready to weather financial storms so their business can make
to a brighter day.
Marketing in a Down Economy - What
Research Says
Our focus is on marketing. Is it a good decision to decrease or stop marketing in difficult economic times? Certainly it sounds logical to say: we can live without a few ads to help cut costs. However, it appears that logic doesn't hold up when studied more deeply. A plethora of studies (most focusing on traditional media outlets) show that in the long run, the companies that maintain marketing budget levels – or increase them – during a recession or economic downturn outperform the companies that reduce marketing spending at those times.
Marketing in a Down Economy - Outsmart
the Competition
The reason is simple – almost too simple! When the majority of businesses are decreasing spending on marketing, the media outlets get hungry and begin to offer a bigger bang for the marketing buck, and the few who maintain their budgets (or increase them) gain greater influence on target customers.
When marketing in a down economy, we strongly encourage businesses to resist
the urge to respond with a knee-jerk action of pulling the plug on their
marketing budget – sit quietly for a bit and watch others do that. Then,
when the media outlets get hungry and offer deals, be the first to jump
in and buy up the marketing opportunities (at less cost) in both traditional
and non-traditional media outlets.
When marketing in a down economy the best decision is to spend your marketing
dollars frugally. Resist the urge to decrease your marketing budget.
Let your competitors do that while you seize this rare marketing opportunity.
You will enjoy the results.
When marketing in a down economy be wise and strategic;
we can show you how to make every marketing dollar count. Contact
us and
get it done right.
