Recession Strategies and Marketing Opportunities

Seize the Opportunity

Businesses that survive our current economy will be the firms that invest in branding and marketing. An economic downturn is the perfect opportunity for companies with a long-term strategy to increase market share and improve sales. A confident and aggressive approach to marketing will also position your company for success when the economy begins to turn around.

Learning from the past
Smart businesses see the opportunities and know how to take advantage of any situation, including recession. Studies by McGraw-Hill show that steady ad spending during recessions resulted in increased recognition and sales, while companies that cut back experience little, if any, growth. Additionally, firms that maintain or increase their advertising expenditures averaged significantly higher sales growth, both during and after, than those that reduced advertising.

A study by the American Business Plan (the ABP project) found that companies that maintained their advertising budgets suffered no sales slowdowns and grew more than double over their competitors who had cut advertising.

Some of the companies that took advantage of recession advertising and marketing opportunities to establish a strong brand and build brand equity include: Coca-cola, General Foods, Gillette, Levi Strauss, Proctor and Gamble, Quaker Oats and United Airlines.

Strategies to take advantage of the economic situation
Big corporations are not the only ones who can or should take advantage of the marketing opportunities our current economic situation offers. Smart businesses of every size, new or established companies — if you are serious about success here are some strategies you can put into practice immediately.

1. Redouble your branding efforts. Does your brand need to be reinvigorated or redesigned? An updated brand can help you reconnect with your existing customers, grow your sales and inspire loyalty. Customers buy from businesses they know and trust.

2. Review your marketing plan and budget. While the first reaction is to cut, we urge a cautious approach of evaluation and planning. Focus on what is working for you, and consider new opportunities. It may be time to shift emphasis or rethink your message. Test, review and revise constantly.

3. Take advantage of lower advertising rates. Lower rates and service fees offer the perfect opportunity to improve or expand your marketing efforts.

4. Invest in and utilize technology. Is your website and online marketing working for you? A website upgrade, social media or email campaign, or landing page/search engine optimization can impact your bottom line by helping you engage your target market.

Take advantage of these strategies, but don’t go at it blindly. Research, strategy, and review have always important components of any successful campaign, but they are essential during a recession. Advertising and marketing doesn’t have to be prohibitively expensive, but it ought to be effective. Invest in your brand by choosing quality creative partners who understand the importance of strategic planning.