Why You Should Market in a Recession

There’s no more exciting time to be in the advertising business than during a recession. All great enterprises move forward in a recession, and the weaklings move back. The dumbbells cut back on advertising. The smart people don’t.” ~Ed McCabe

Studies have shown that there is a potential downside of cutting back in a recession–no longer having brand recognition when the recession ends. While it might be tempting to cut your marketing budget first when times get tough, this could be extremely detremental to your brand in the long run. This is one of the reasons it is vital that you continue to market in a recession.

It is important to remember that, when it comes to brands, absence does not make the heart grow fonder. Consumers are quick to forget you. It will cost you more money in the long run if you have to start over than if you had continued steadily. Data shows that when brands stopped spending on communications for six months or more, brand usage and image declined by 13% (Millward Brown, April 2008).

HOW TO MARKET IN A RECESSION:
Use the recession to your advantage: During the Superbowl, many of the typical brands who advertised withdrew, opening the door for others to catch consumer’s attention. This should be a lesson learned. Tough times open up possibilities and allow you to gain a greater share of voice when there is less noise to contend with.

Change channels. Use a recession to re-evaluate the media channels you are using to target consumers. As budgets shift, the need to find innovative channels should shift as well, opening up new doors that may cost less money and be more dynamic. Look for new avenues to build brand recognition, whether it is launching a marketing campaign via social networking or creating a variety of viral videos on YouTube.

Love the ones you’re with. Spend less time finding new customers and more time keeping your current customers happy. With everyone feeling more vulnerable, it is vital that you don’t take your customers for granted and focus on how to keep them loyal to the brand.

Make a Plan. While it’s too late to make a pre-recession plan, don’t forget to work on a post-recession plan. You will need to know how to capture the attention of consumers once they start spending again.

For more tips on how to market in a recession, visit: www.thinkstrategic.com.