Make the Recession Work for Your Brand
Make the Recession Work for Your Brand
Cutting marketing and sales budgets during recessionary periods changes long-term results. A key reason is that when advertising “noise” decreases, the voice of those still talking sound that much louder. When the competition stops or reduces their advertising efforts, it’s a prime opportunity for your brand’s message to be heard. Since your message is one of the few messages reaching customers, the odds of success are multiplied.
American Business Press, in its book “How Advertising in Recession Periods Affects Sales,” states: “The findings of the six recession studies to date present formidable evidence that cutting advertising appropriations in times of economic downturns can result in both immediate and long-term negative effects on sales and profit levels.”
The Buchen Agency measured the effects of advertising for business-to-business marketers through successive recessions in 1949, 1954, 1958 and 1961. They found that not only sales and profits dropped off for those companies that cut their advertising, but in addition, when the recovery came about, these same companies also lagged behind those who didn’t cut back.
In good times, marketing is important, in bad times, it’s vital. During tough times, customers look for specific qualities in a brand such as value. When customers are in need, satisfy the need. During a recession market dynamics change drastically. The key is knowing what your customers need, not what they want. Here are some simple guidelines for successful recessionary marketing:
Focus on Branding
* It’s safe to assume customers will be price conscious during a recession. Therefore, it’s normal to assume that before making decisions, customers will do more “shopping around” than usual. For this reason, marketers must focus on ways to make their brands stand out from the rest and address the customer’s doubts. Brand messages should focus on practical uses of the product and demonstrate how customers are getting high quality for a low price (value). Establishing a system of feedback for customers will also help to distinguish your product. The key to successful recessionary marketing is emphasizing value. During an economic boom customers are much more likely to pay high prices. When times are bad customers are much more careful with their money. So marketers must focus on different aspects of their products.
Focus on Customers
* During a recession marketers need to focus on current customers, not just new ones. The assumption that any business is good business is not the case here. The best prospect is a current customer. Acquiring new customers is five times more costly than retaining existing ones. Bad times can be used to focus on existing customers and turning them into loyal customers. That can be accomplished by researching customer needs and the ability of your product (and competitors’ products) to meet these goals.
Marketing Focus
* During a recessionary period, marketers should focus on the strong points of their brands and align them with their customers’ needs. A comprehensive marketing plan can help to position brands and to capture and maintain loyal customers and profitability. A long and objective look must be taken at your brand’s current marketing activities, focusing on those with greater potential.
Recessions are never desirable, but they are inevitable. Using the right marketing strategy during tough times is the best way for your brand to survive. Importantly, don’t decrease advertising activity. Get to know your customers and think of new ways to create value in your brand—and to distinguish your brand from others.
Learn more about strengthening your brand in a down-turned market. Contact our Managing Partner, Mark Levit at 212.696.1200.
Make the Recession Work for Your Brand - To learn more about this author, visit Mark Levit's Website.
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As the economic cycle spins, marketers look forward to the economic highs and dread inevitable recessions. When the economy goes sour, how do brands stay alive? During an economic slump, advertising budgets tend to be the first item cut. But history strongly suggests advertising budgets should be increased during a recession.
Cutting marketing and sales budgets during recessionary periods changes long-term results. A key reason is that when advertising “noise” decreases, the voice of those still talking sound that much louder. When the competition stops or reduces their advertising efforts, it’s a prime opportunity for your brand’s message to be heard. Since your message is one of the few messages reaching customers, the odds of success are multiplied.
American Business Press, in its book “How Advertising in Recession Periods Affects Sales,” states: “The findings of the six recession studies to date present formidable evidence that cutting advertising appropriations in times of economic downturns can result in both immediate and long-term negative effects on sales and profit levels.”
The Buchen Agency measured the effects of advertising for business-to-business marketers through successive recessions in 1949, 1954, 1958 and 1961. They found that not only sales and profits dropped off for those companies that cut their advertising, but in addition, when the recovery came about, these same companies also lagged behind those who didn’t cut back.
In good times, marketing is important, in bad times, it’s vital. During tough times, customers look for specific qualities in a brand such as value. When customers are in need, satisfy the need. During a recession market dynamics change drastically. The key is knowing what your customers need, not what they want. Here are some simple guidelines for successful recessionary marketing:
Focus on Branding
* It’s safe to assume customers will be price conscious during a recession. Therefore, it’s normal to assume that before making decisions, customers will do more “shopping around” than usual. For this reason, marketers must focus on ways to make their brands stand out from the rest and address the customer’s doubts. Brand messages should focus on practical uses of the product and demonstrate how customers are getting high quality for a low price (value). Establishing a system of feedback for customers will also help to distinguish your product. The key to successful recessionary marketing is emphasizing value. During an economic boom customers are much more likely to pay high prices. When times are bad customers are much more careful with their money. So marketers must focus on different aspects of their products.
Focus on Customers
* During a recession marketers need to focus on current customers, not just new ones. The assumption that any business is good business is not the case here. The best prospect is a current customer. Acquiring new customers is five times more costly than retaining existing ones. Bad times can be used to focus on existing customers and turning them into loyal customers. That can be accomplished by researching customer needs and the ability of your product (and competitors’ products) to meet these goals.
Marketing Focus
* During a recessionary period, marketers should focus on the strong points of their brands and align them with their customers’ needs. A comprehensive marketing plan can help to position brands and to capture and maintain loyal customers and profitability. A long and objective look must be taken at your brand’s current marketing activities, focusing on those with greater potential.
Recessions are never desirable, but they are inevitable. Using the right marketing strategy during tough times is the best way for your brand to survive. Importantly, don’t decrease advertising activity. Get to know your customers and think of new ways to create value in your brand—and to distinguish your brand from others.
Learn more about strengthening your brand in a down-turned market. Contact our Managing Partner, Mark Levit at 212.696.1200.
Make the Recession Work for Your Brand - To learn more about this author, visit Mark Levit's Website.
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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