Thoughts on Recession Marketing
March 19th, 2009by Robert Middlestetter
Many executives have searched for advice on recessionary marketing. They look for insights on how to guide their companies through unsettled economic times. Read enough of these articles and you’ll note that, statistically speaking, companies who maintain or increase their advertising spend during a recession find themselves in a stronger competitive position when good times return.
The standing argument is if you advertise when your competition stops or reduces their advertising effort you will stand out and be noticed. This is true—you will get noticed.
But, what actually propels you ahead of the competition? Is it that the customer finally discovers you in the lack of advertising clutter? Unless you are a first time advertiser, that likely is not the case.
Marketing your service or product in recessionary times wins you leadership points that significantly enhance your brand value in the market place. The company that stands tall and confident during a recession wins the respect of potential customers who, by the way, are also suffering the pain of a down-turned economy.
By standing tall you send the message that you have a great product and a solid company. This added brand equity often becomes the deciding factor when customers compare competitive product offerings. Your customer has greater confidence in your product and you get an express ticket to the “A” list.
People like market leaders and when they’re not feeling all that good about the future; they demonstrate a preference for the stronger brand because there is less risk and no one wants to take risks in risky times.
Also consider this—if you maintain or even increase your marketing budget you will be buying a leadership position for cents on the dollar. It would take you double or triple that amount invested in good times to achieve the same result.
So, let’s say you go for the brass ring and aggressively promote your product during the recession. Good for you—very smart! Why? Because when good times return, it is your competition who will have to spend two to three times your spending level in an effort to catch up to you!
There is a high probability that because they did not advertise when you did, they didn’t enjoy the same level of sales that you enjoyed. They simply do not have the bandwidth to sustain the investment required to close the leadership gap.
June 26th, 2009 at 9:29 am
May I use this as a discussion starter on our Group in LinkedIn?
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Tina Hutzelman Reply:
June 26th, 2009 at 5:18 pm
Absolutely – we also have a page of Fast Fact About Recessionary Marketing – http://www.conceptcompany.com/blog/facts_recessionary_marketing/
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