In down economies, many companies experience lower sales. So, how do they meet the economic challenge? Whatever else they do, they shouldn’t cut content marketing.
Increase Marketing During Slow Economies
A study by Penn State’s College of Business found that a recession should actually prompt an aggressive increase in marketing spending.
The study found that businesses entering a recession with a pre-established strategic emphasis on marketing, an entrepreneurial culture and a sufficient reserve of under-utilized workers, cash, and spare production capacity were best positioned to approach recessions as opportunities to strengthen their competitive advantage.
Companies that increase marketing during hard times — when competitors are cutting back — can generally boost both market share and return on investment.
Aggressive marketing can stimulate demand from new and existing customers. But this doesn’t mean simply throwing cash at marketing campaigns. You need to come up with smarter, more targeted marketing strategies.
Proctor and Gamble pushing Ivory soap during the Great Depression.
Intel launching “Intel Inside” during the 1990 to 1991 recession.
Walmart bombarding its rivals with Every Day Low Prices during the difficult economy of 2000 to 2001.
Few companies can afford to stop or cut back drastically on marketing — no matter what the economic conditions. New products can be revenue generators if marketed properly.
Determine what sets your business and its products or services apart from the competition and proactively market your unique selling proposition.
Here are four suggestions on how to make the most of marketing during tough times:
1. Do more online and email marketing. The affordable cost of online marketing, the ability to communicate with customers on a one-to-one basis, faster results and better tracking capabilities are all good reasons for online marketing.
2. Search for media deals. During an economic slowdown, paid advertising rates often decline, as media outlets start to feel the pinch. So you may be able to negotiate a great deal on space. Consider opportunities for barter transactions.
For example, a business short of cash may want to make a trade and sharing in the arrangement conserves your company’s cash flow. It is not unusual to get more premium placement advertising during an economic downturn than when the economy is thriving.
If you absolutely must reduce your marketing budget, try to maintain the frequency but shift to smaller or shorter, less expensive ads.
3. Don’t forget public relations. A PR campaign can complement a marketing campaign at a reasonable cost. By using certain web channels to distribute press releases, you can get information out to more readers and get listed on search engines.
4. Anticipate how customers are likely to change their behavior and shift your marketing message accordingly.
Will your customers look for quantity discounts, postpone purchases, negotiate for lower prices or trade down to less expensive products and services? Tailor your promotions and marketing messages. Emphasize reliability, quality and value.
Companies have a better chance of weathering an economic storm if they look at marketing as an investment and a potential opportunity rather than an expense.