Successful Marketing During an Economic Downturn

In business, sometimes the hardest decisions are ultimately the best for your brand. Now, as companies tighten their budgets and cut costs across the board, it’s an ideal the time to increase brand awareness through strategic marketing. The efforts you put forth today could not only carry you through this current downturn, but could also mean future economic stability. But how can you justify the cost?

Advertising in a down economy has many benefits. Executives agree that when they see a company advertising during an economic crunch, they have a better opinion about the company’s commitment to its products and services. In addition, when customers are calculating their own budgets and deciding where every dollar will go, increased marketing of your company/product could keep it in the forefront of their minds when they ultimately make a purchasing decision.

One of the best strategies for long-term success is to take advantage of increased marketing and advertising during an economic downturn when others are holding back. A recent analysis of the Profit Impact of Marketing Strategies compared the results of companies that increased, maintained and reduced marketing dollars during a recession. While companies that reduced advertising dollars saw a jump in a higher return on capital employed, they also achieved poor results when the recession ended. As the economy improved, those who had increased their marketing budget achieved a significantly higher return on capital employed and gained an additional 1.3 percentage points of market share.

The opportunity to not only maintain but increase sales and profits is there for those willing to keep an aggressive advertising stance. Marketing no longer simply involves providing customers with information about a certain product. It serves as a means for creating a bond between the brand and consumers. It’s been proven over and over again: Brand loyalty is a key factor in a company’s success. As other companies are cutting back on their advertising dollars, they are making room for braver companies to access consumers that still need attention. The reduced advertising traffic provides a great opportunity for companies to increase brand awareness and create additional demand.

More companies are also realizing the importance of maintaining their current client base and focusing attention on their satisfaction. Communication and feedback is a key factor. Direct mail and e-mail is one of the most cost-efficient ways to let your loyal client base know they’re still top-of-mind.

Overall, your messaging during a downturn should be in tune with what’s happening in the economy and what your customers might be thinking or feeling. At a time when consumers are cutting back on luxury items and concentrating on necessities, an emphasis on the value and savings of your product is important.

Here are five things to keep in mind when considering your marketing dollars:

(1) Consider your company’s current budget. Don’t cut down on marketing but strategize how to spend your advertising dollars more wisely.

(2) Send a clear message through your branding about the value of your product and what makes your company/product/service unique.

(3) Reassure your current customers that you are a trusted source they can go to by marketing directly to them.

(4) Take advantage of the decrease in advertising from your competitors to bump up your brand’s marketing.

(5) Get back to the basics. Look back on the strategies that made your company successful in the past and keep in mind that customers aren’t interested in gimmicks but practical benefits.

The important thing to remember is that your marketing dollars are an investment in today’s market as well as tomorrow’s success.