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Smarter Marketing During a Recession
By Cynthia Fedor | December 8, 2008
For the past year, I’ve been hearing businesses ask the same question over and over again: “How should we cut advertising and marketing budgets to help us through the recession?” The answer is – you shouldn’t.
During tough times like these, the immediate reaction for businesses is often to give the axe to marketing budgets. Apparently, they’re seen as luxuries. Really? How else is your customer going to know about your products and services? More importantly, who’s going to tell them why they need your products and services? Rather than reducing marketing spend, businesses should be reevaluating marketing strategy.
First, businesses need to recognize the incredible opportunity that’s available to them now. As noted in John Quelch’s blog titled, “How to Market in a Recession,” he points out:
“It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”
So, understanding this point, the question to ask is, “how should businesses redirect marketing plans and budgets to build their brand and gain traction in the marketplace?” Patti Williams, Wharton marketing professor, offers a great suggestion in a recent Forbes article:
“To the extent that advertisers feel their clients or consumers are experiencing anxiety, ads should try to empower consumers and help them think of ways to be in control in a world where they feel out of control.”
In other words, take a moment to look at what you’re selling through the eyes of the consumer. Ask yourself, what are the things that matter to them the most right now? Then connect those values with what you are offering. Kraft Foods CMO Mary Beth West does a great job explaining this point. To see her take on marketing during rough times, visit AdAge’s video on iTunes. You can also read what other marketing and advertising professionals think through AdGabber’s online forum.
Finally, business can take this opportunity to explore other more effective and cost-efficient marketing tools and venues. Rather than dumping money into a medium that doesn’t guarantee a decent return rate, find more precise ways to target your prospects.
Let me know what you think. What are some challenges your business is facing in terms of marketing and advertising during a recession? How are you dealing with marketing now?
December 12th, 2008 at 11:26 am
[...] Finding tools that give businesses the ROI and customer response they need to grow while respecting reduced marketing budgets is critical for success. I just wanted to remind you to take a look at the complete direct [...]
December 26th, 2008 at 4:35 pm
[...] current state of the economy is forcing many businesses to redirect and reorganize their marketing strategy for 2009. Essentially, now is a time to be more focused and targeted than ever with advertising [...]
January 29th, 2009 at 3:07 pm
I agree with you. Now’s not the time to slash marekting budgets in an effort to save money. This type of short-term fix will hurt businesses down the road; when the economy picks up, they’ll have to work harder to re-establish their name. There are smarter tactics to use during these troubled times. Find out more at http://www.daishocreative.com/articles.
February 12th, 2009 at 3:56 pm
[...] we look regarding marketing during a recession. Should businesses up their marketing spend, cut budgets, maintain current marketing plans, etc? I don’t have to tell you what to do – that question [...]
February 16th, 2009 at 4:07 pm
[...] saying that it’s in their interests to spin optimism just like it’s in the interests of direct marketers, TV & cable companies, and telesales companies, to spin the same kind of [...]