As part of a whitepaper from Vistage titled "How to Prepare for the Recovery: Prospering in the New Business Landscape," the company recommends several actions that business owners should take to position themselves well as we exit the current recession. One of those recommended actions is to ramp up marketing and advertising efforts.
Why does advertising during a recession make sense? Over the years, hundreds of studies have been conducted and all the results conclude that businesses that advertise the most during an economic downturn reap the highest rewards on the other side. For example, during the 1989-1991 recession Kraft Salad Dressing increased their advertising and experienced a sales growth of 70%. Also during that period, when most beer companies cut their budgets, Coors Light increased theirs and watched sales rise 15%.
So what are Vistage's "tactical" tips for marketing and advertising?:
- If it isn't working - get rid of it! Cut any programs that are not giving you a return on your investment.
- Keep your core-customers loyal to you. Don't go after new markets; focus on maintaining the customers you already have.
- Mind your competition. Pay attention to what your competitors are doing in terms of advertising. As they cut their budgets, hone in on their customers.
- Do your due diligence. As the market experiences significant changes...so do your customers habits. Pay more attention than ever before to research, etc.
- Don't be afraid to spend! If at all possible, it is the ideal to increase your advertising/marketing budget. If you cannot make an increase, certainly work to maintain your current spending habits.
- Make your customers feel secure. In a very turbulent time, it's important for people to feel confident in your products and services.
- Maintain your best brands. Although it sounds like a good idea to discount your most successful brands, it's a bit contradictory. Instead of reducing the costs on your flagship products and services, consider created a separate brand with a lower price point, etc.
Recession and advertising facts cited from Recession Marketing Success Requires Boldness.
