Surviving A Recession With A Strong Marketing Strategy
VP of Digital at branding agency Clearbridge oversees the client's digital and social media efforts.
During an uncertain economic downturn, many business people ask: "Can we still advertise?" At branding agency Clearbridge, Can You Stop?
A bad chain can change everything in a business. Budgets were cut, roles were cut, even services like Free Company Coffee were cut. The moral of the story. change is happening. But what matters is how you change it .
All too often, companies responding to a downturn control marketing and advertising spending, but is this the right way to go for survival?
The cost of taking shortcuts
At first glance, the decline in advertising spending may seem like a logical reflection of the economic downturn. Consumers spend less; So the company earns less. Marketing spend should do the same, right? Not if you want to maintain your position in the market as the economy changes around you.
In a recession, it's hard to look beyond the present and keep seeing the bigger picture on the horizon. The big picture is your long-term return on investment (ROI) and the competitive position of your business when the tide of competition recedes (and always will). What you do now will determine your place later. These storms can take you out to sea, dragging your wallet and slowing or halting your marketing efforts. On the contrary, maintaining or increasing marketing efforts will help the company to further capitalize and make the brand more of a magnet in the space vacated by competitors who have abandoned their efforts.
Post vs. Kellogg's Great Depression. While the Post significantly reduced advertising, Kellogg doubled its spending, dramatically increased radio spending and introduced a new cereal product, the popular Rice Krispies. Revenues increased and the company became the category leader.
Recessions often clear up the marketing field and allow companies that continue to spend on advertising to attract more business. This creates opportunities for brands to attract new customers and differentiate themselves from competitors.
Send the right message
Marketing and brand investment aren't the only things to consider during an economic downturn. Consumer awareness is especially important during an economic downturn. Consumer behavior, attitudes and attitudes will become more cost-effective. Your strategy and message should be reflected in your media plan.
Consider the customer. How can you present your brand message today when there are significant changes in economic activity? Does the message contain a veneer of compassion appropriate to the current climate? Does your product or service provide immediate value to customers?
These types of questions help you examine your message through the eyes of your customer, which happens to help pull your business out of recession. However, to get it, marketing is very important.
By creating messages that respond to changing consumers and the current economic climate, your brand can gain more credibility and overall value. It will help you maximize your advertising ROI by sending the right message to the right people.
Loyalty love
Loyalty programs strengthen brand relationships with key customers and can be an important tool for building business and strengthening customer relationships during a recession. There can be no greater challenge than eroding your customers' loyalty to your brand, and those who remain loyal may be more willing to open their wallets, especially if something is in store for them.
Developing a loyalty program can drive more business from existing customers by encouraging them to continue shopping with your brand through rewards, points and benefits. This will help maintain your core base while you continue your efforts to acquire new customers. Boomers are among the most committed to loyalty programs. And the younger generation is more willing to try new products and brands . An attractive loyalty program can help strengthen the loyalty of older generations to your brand by engaging the younger generation who appreciate the rewards system.
If you haven't already, consider using a simple rewards system that promotes value and convenience. You can offer sign-up incentives to new customers and earn additional rewards by referring existing customers, helping to serve your core base and giving newcomers another reason to seek out your brand.
URGENT!
2007-2009 The years of the Great Recession disrupted many markets, leaving business owners wondering whether or not they should change their strategy. The resilience of any business depends on demand, but when demand slows, how do you deal with it?
You may need to rotate. There is no better example of the importance of this than the Covid-19 pandemic, which has shaken all businesses to their core. By adapting your business model to new market opportunities, you can optimize your revenue streams. Double-check the changing needs of your target market. How have they changed? How do I complete a new survey? You may need to completely change your target market.
This is also the time to improve your digital strategy to further reach your customer base and increase brand awareness. Review your current digital efforts and use your social presence to target customers and promote the latest messages.
Bottom line. You can't sit back if what you're doing isn't working. It may seem like the fastest way to cut your marketing and advertising costs, but it can also be the fastest way to bankruptcy. Think carefully, don't be passive. Research, ponder and make every informed decision. In times of economic uncertainty, it's good to keep going. And whatever the circumstances, always remember that growth can happen in a slow economy.
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