When economic times are tough and people aren’t spending as they used to, businesses often cut back or even eliminate marketing expenditures in order to remain afloat. However, the worst thing a company can do during a recession is not advertise. While cutting advertising dollars may protect profits initially, the benefits will only be short-term. Decreasing marketing during a recession will both weaken the brand and hurt the bottom line when the recession ends.
Studies conducted during previous recessions found that businesses who continued to advertise saw an increase in sales growth both during and the two years following the recession, as compared to their competitors who decreased or ceased spending. During a recession, smart business owners maintain a strong advertising presence and continue to follow their marketing plans in order to carry on with branding or call-to-action campaigns. As the saying goes, “when times are good, you should advertise. When times are bad, you must advertise.”
Here are some tips to help you weather the economic storm and aid your company and brand in the long-run:
- Do not increase spending, just maintain it. If you maintain your ad budgets, you will stand out when your competitors decrease their spending and be top-of-mind with consumers even if they’re not buying until the economy picks up again. This presents a great opportunity to increase market share.
- Ad dollars can go a long way in a recession. You can make a $30,000 campaign work like a $60,000 one because media outlets are more inclined to negotiate and offer incentives in order to sell all of their inventory.
- Clearly define your market. Get to really know your target market and how to best reach them so your ad dollars are not wasted.
- Don’t overdo promotions. If you have sales all the time, even your loyal customers will become conditioned to it and won’t purchase your products until the next sale. Customers spoiled with coupons and discounts will expect the sales to continue post-recession.
- Shift to alternative marketing efforts. Calling customers directly or sending a hand-written note are a cost-effective way to increase favorable perceptions with customers and can lead to an increased or maintenance of sales over time.
If yours is one of the many businesses affected by the struggling economy, call Strategic Marketing today at (561) 688-8155. They can help you navigate these turbulent economic times by making your ad dollars go a long way. Call Strategic Marketing today.