Blog
Recession Marketing: Opportunity Abounds
Posted Mar 17, 2009 by in Brand Strategy
Every time I turn around I hear nothing but economic doom and gloom. But no one seems to be talking about a basic fact of any recession: consumers and businesses are still spending tens of billions of dollars…EVERY DAY. And do you know who’s going to benefit the most from all that spending? Companies that make a commitment to marketing during this economic downturn.
I know it sounds like, another pitch from a pitchman but it’s true. When the economy slows and the market “pie” shrinks, the only way to maintain our revenue is to capture a bigger slice of the pie. The best way to do that is through marketing. Healthy companies with marketing resources will gain share from their weaker competitors who are forced to horde cash and pull back. If we have the resources to increase marketing, we can gain market share now more efficiently than ever.
This is not just a theory. There have been many studies proving that when companies increase marketing during recessions, they gain market share1. Also, consumers tend to spend more immediately following a recession than just prior to it2. Building awareness before this spending spike occurs will insure that our business continues to gain market share when the pie begins to expand again.
If we’re not in a position to increase marketing in these tough times, then perhaps we can identify some areas where we can refocus our limited resources and make an impact.
Now more than ever we can’t afford to miss the mark or waste valuable marketing budgets. If you’re prepared to make a commitment to marketing during this downturn but you’re not sure how best to do it, call us. Many of our clients are experiencing growth and increased sales despite what’s being reported in the newspaper!
1 Cahners Publishing Co. and Cambridge-based Strategy Planning Institute, January 1982. Philip Geier, Chairman Emeritus, Interpublic Group 2 Philip Geier, Chairman Emeritus, Interpublic Group
I know it sounds like, another pitch from a pitchman but it’s true. When the economy slows and the market “pie” shrinks, the only way to maintain our revenue is to capture a bigger slice of the pie. The best way to do that is through marketing. Healthy companies with marketing resources will gain share from their weaker competitors who are forced to horde cash and pull back. If we have the resources to increase marketing, we can gain market share now more efficiently than ever.
This is not just a theory. There have been many studies proving that when companies increase marketing during recessions, they gain market share1. Also, consumers tend to spend more immediately following a recession than just prior to it2. Building awareness before this spending spike occurs will insure that our business continues to gain market share when the pie begins to expand again.
If we’re not in a position to increase marketing in these tough times, then perhaps we can identify some areas where we can refocus our limited resources and make an impact.
- Run 15’s instead of 30 second TV spots
- Target a smaller demo and switch to radio
- Focus on more narrowly targeted audiences through direct mail or search engine marketing
- Consider adopting incentive pricing such as temporary promotions, discounts for loyal customers or extended credit terms for our best clients.
Now more than ever we can’t afford to miss the mark or waste valuable marketing budgets. If you’re prepared to make a commitment to marketing during this downturn but you’re not sure how best to do it, call us. Many of our clients are experiencing growth and increased sales despite what’s being reported in the newspaper!
1 Cahners Publishing Co. and Cambridge-based Strategy Planning Institute, January 1982. Philip Geier, Chairman Emeritus, Interpublic Group 2 Philip Geier, Chairman Emeritus, Interpublic Group