Tweet

Marketing in a recession can really help your small business

Written by: Jen Hinds

Article Overview: The most important thing a business can do in these challenging times is marketing. It is ironic than that this is often the first budget that companies cut when times get tough. Small businesses can really take advantage of this and learn to survive and thrive in these challenging times.

Marketing in a recession can really help your small business

The most important thing a business can do in these challenging times is marketing. It is ironic than that this is often the first budget that companies cut when times get tough.

But this does create an opportunity for forward thinking companies. The key thing to remember is that while the economy is struggling at the moment, and most of us are indeed feeling the pinch, people and businesses are still spending money. And so business still need to fight for their custom.

This is particularly the case with small businesses. It is really important for the small business to consider the opportunities that arise during a recession:

• Less competition - Fewer businesses doing marketing means that consumers are subjected to less marketing "noise". This means that your message will not be facing as much competition and will therefore be more likely to be heard!



• Reduced rates - With advertising budgets cut, the media has to be more competitive to encourage businesses to place ads with them. This is great news! There is less competition - and it is cheaper than ever to advertise!



• Changing behaviour - Buying habits change during an economic downturn because our needs and priorities do. Those businesses that respond to these changes will fare best. This is an opportunity to assess what the changing needs of your target market are. Make sure that your marketing addresses this and shows your potential clients how your company can meet those needs.

There is lots of evidence to prove that those businesses that continue to market during a recession not only survive the hard time, but come out the other end stronger than ever.

Remember, most companies are cutting down. Stay ahead of the competition and keep on marketing!

Related Articles
  Why You Must Keep Marketing Through The Recession
  Are there any businesses that are recession-proof?
  “A Strategic Action Plan For Recession Resistant Marketing”
  Advertising during recession
  Fun Recession Activities!

Article Tags: budget, budgets, buying habits, challenging times, consumers, economic downturn, economy, feeling the pinch, great news, hard time, marketing, nbsp, priorities, recession, small business, small businesses, spending money, target market, ul



Related Forum Posts
Good Day from Arizona - Hi everyone. I am a small business owner in Tucson, AZ. I have an Internet based HR program that I designed for the small business owner and I am looking at this forum to help me in learning how to do Internet Marketing. I believe that the small business community has a wealth of knowledge and if we all pool our collective "brain power" we can help one another succeed. I look forward to being a part of this interesting group.
surviving an economic crisis - I'm moving to Idaho then I'm building a bunker and stockpiling 2 years worth of supplies. I'm buying a fishing rod, a hunting rifle and bunch of chickens to produce eggs... I like chickens because they don't care about recessions or depressions. OK... that may be Plan C - let's hope it doesn't get to that. So far, our business is doing well, we often target affluent markets and from our experience in the early 90's recession this worked well. BUT - what we're seeing this time around is not a simple recession. I think it could get bumpy. What type of businesses thrive in an economic downturn?
The Hidden Hand Effecting Your Bottom Line - If you are based outside the U.S and run an online business, you'll probably receive a lot of your payments in U.S dollars. When the recession hit I saw a lot of non-U.S business people boasting how they [u:20bfadx5]hadn't been effected by the recession[/u:20bfadx5], brushing off the recession as something that was not important. But they [u:20bfadx5]overlooked the hidden hand[/u:20bfadx5] effecting their profits. The currency markets which for non-U.S businesses paid in U.S dollars has masked the effect of the recession somewhat, and has an incredible effect on your overall profits. Looking at my profits over the past several months I can see fluctuations up and down. I may have a hard time attributing what is causing these fluctuations if I believed the recession didn't effect me because overall my earnings and traffic are up. But then I compare to the U.S - ££ exchange rate, and notice a [u:20bfadx5]strong correlation[/u:20bfadx5] with my profits. When the dollar is strong my profits are higher, and when it is weak they are weaker. It didn't account for all fluctuations but the effect was very strong. I know most people are aware that exchange rates effect their business, but I don't think people realize how strongly it's effects can be, and how closely related to the economy this is. So to say "the recession didn't effect me" because your profits went up can be [u:20bfadx5]very wrong[/u:20bfadx5]. The hidden hand of exchange rates could have improved your profits, and the exchange rates changed due to changes in the economy, i.e the recession. The recession has caused this fluctuation in exchange rate as people fled from the stock market into cash, and with the $$ being the biggest currency in the world, more people fled into the dollar, pushing up its value against other currencies. When the stock market bounced in March and people moved back into stocks and other investments, the dollar weakened. In addition I did see a overall drop in advertiser spend which wasn't just attributed to the dollar weakening after March. I attribute this to advertisers cutting back their budget in response to the economy, but given a change in mood and outlook in recent months this is now reversing and advertiser income is up despite a weaker dollar. So the recession has played a bigger role in my business than at first glance, so just because profits are up does not mean my business is not being thrown around by external economic factors. For this reason I've studied the economy, made a prediction on what is most likely to happen based on trusted sources with the strongest track record, and made a plan for that eventuality, and then also plans for less likely scenarios, so that my business can prosper in either situation. Instead of overlooking this hidden hand it is important to recognize it is there, and not accept it as a mystical force your business is a slave to, but something you can react to and plan for in order to take your business further.
Re: Obama Wants Social Security for Illegals - [quote="Lucy Wu":2dlphfqu]I think America's biggest problem right now is clearly the recession, and that should be the main focus as of now.[/quote:2dlphfqu] I agree. Do you think President Elect Obama is doing or will do what is best in terms of beating this recession?
Re: Are Economic Recessions Good for Franchising? - All we can do is remain wide awake and pay attention to the ebb and flow. My strategy is to be prepared and go with the flow. There could be some rough times ahead... Interestingly, our business has remained strong. I believe it's because we're in such a tight little niche and we're well positioned to sign jobs nationwide, therefore we're not restricted to location. We also target affluent markets that have higher disposable incomes - this we do locally. Here are some Franchise Categories that could weather a good recession... Health and Personal Care Food services like Subway Debt Collection Tax Preparers & Advisors Any other recession proof franchise opps out there?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Adjusting Your World

Why Small Businesses Don't Survive

Multilevel Marketing: 4 Tips To MLM Success

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.