Let’s talk about marketing in a recession…
Fact… Since 1930 we’ve had only 11 recessions.
Fact… recessions only last 6-10 months on average AND the worst recession only lasted 16 months. Now no two downturns are exactly alike, and this is where strategically focused marketing companies can thrive & become invaluable to a company & its marketing efforts.
Consumer patterns come to light, if you’re paying attention. This is where to make your advertising & marketing adjustments to account for the culture shift occurring… speak to your consumer where they are & not where they were or where you want them to be.
Despite these facts, events still occur due to panic such as job loss, savings & investments decline & home equity evaporates. Companies begin to indiscriminately cut marketing costs & this can be a huge mistake as this strategy prolongs the given downturn much longer as it makes the ramp up that much more challenging. Consider using a scalpel instead of a cleaver to your marketing to carve out the needed (and urgent) strategy to still drive business & prep for when the market comes back… as it always does.
The truth is… consumers don’t “go away” during a recession…
They just grow more conservative as consumer confidence is reduced.
The good news though… Because of bad business decisions by those hiding their heads in the sand, there’s new opportunity for you to gain a lot of market share here. Additionally, there are always (historically speaking) new consumer segments that emerge during times likes this… pay attention. Most likely your demographics & geographics may tweak a bit & this could be new opportunities for your business.
Keep in mind that loyal customers are your primary source of cash flow & natural growth so adjust your marketing efforts accordingly. Consider segmenting your messaging & advertising “asks” to be specific & hyper focused on each category of consumer you are targeting… new consumers will emerge for your products or services during this time, as well.
What can you do….
- Seek out co-op if you can.
- Make sure your agency negotiates hard for lower media rates, remnant space & volume discounts.
- Frequently review your marketing budget & ad spend to ensure you are maximizing its efforts & trim wherever you can.
- Consolidate wherever possible & develop a smart marketing strategy to maximize return. This may also mean reducing your geographic footprint for a period of time & focus on the low hanging fruit.
- Track savings & sales results… always.
- If you believe you’re the elephant in the room… consider a harder push to gain more market share & potentially push out competition.
Here’s a step in the right direction…
If you have a pre-established strategic emphasis on marketing your brand, this is a great opportunity to take advantage of reduced pricing in the media.
If you haven’t truly established your brand, focus on direct response (lead generation) now & emphasize your core values as much as possible.
Remember always that marketing is an investment & it’s only an expense when you’re doing it wrong!
James Danella
