Many clients, like consumers are nervous over our economic condition, and rightfully so. But now is not the time to cut back advertising, promotion, and marketing. In fact research has shown that companies that take advantage of these times can dominate market share and here are a few reasons why.
- Your competition is probably scaling back. This creates less clutter for attention. Your message can stand out and create more awareness.
- Deals are to be had. Media outlets are more likely to negotiate right now for advertising rates.
- If you are advertising, brand identity begins to drop off immediately when you cut back.
- It costs more to re-build brand identity than to continue it during tough times.
- If others are cutting back and you are maintaining or increasing advertising, promotions, your position as a market leader is enhanced. It sends a message your company is strong, confident, and is maintaining its course of success and market domination.
Now, having said that, it may also be a good time to look at media that gets the most bang for your buck. Here’s a list of things you may want to consider during economic stress:
CEO Drew Reisser of marketing consulting group Renegade offers sound advice to MediaPost on what marketers can do during a recession:
- Focus on advertising with clear and proven return on investment, such as Internet and promotional advertising.
- Be prepared to cut budget bloaters like trade shows, which have a harder time proving ROI.
- Focus on a brand’s core base, instead of going after more expensive new customers
- If a brand has made its bones on humor, don’t be quick to change that. “Acknowledging bad times might feel right, particularly if a recession is protracted, but consumers may not want to be reminded of that fact. And a little entertainment can go a long way, Neisser says. ‘If humor was right for your brand in good times, it’s even more right for your brand in bad,’ he says.” source (http://blogs.bnet.com/intercom/?p=1558)
Market position is hard to get, and maintain, don’t lose it. And if you haven’t yet established a market position, now may be the best time to get started. Remember, as I’ve posted many times here, market position is one of the single most important marketing activities you can do. Establish it now, while your competition is laying low. Do it smart, do it effectively, and do it with confidence. Recessions do not last forever, and the companies that come out with a headstart will be positioned to gain more market share than those that have been on the sidelines.
Remember, nothing happens until a sale takes place, and supporting your sales force with effective marketing has never been more important than it is right now.