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Advertising in Tough Economic Times
The answer to a down market is not to cut
spending, but to practice smarter marketing.
Barry Silverstein, Brandchannel.com
No matter how deep the recession is or
how long it lasts, it's the perfect
opportunity to become aggressive and
grab market share as competitors scale
back their marketing efforts.
Even though consumers are cutting back, they are
finding ways to maintain their quality of life.
Two examples:
According to
CNNMoney.com,many are
leaving the car in the
garage and staying home.
A whopping 50% of
Americans plan to buy
an HDTV in the next
year.
Consumers are refusing to
give up entirely on
vacationing. Even in
these tough times, 59%
of Americans plan to
take a trip of 100+ miles
in the next six months.
They just plan on closerto-home trips: Epcot
instead of Europe.
Ezine Articles;Advertising in Tough Economic Times, by Peter Michund
Many Businesses Increase
Advertising in a Tight Market
Why?
Downturn Brings Opportunities…
An Aggressive Approach
Will Pay Dividends
A McGraw-Hill Research study showed
that four years after a downturn,
companies that maintained or increased
marketing communications during the
economic slowdown typically
experienced 14 times more growth
than companies that cut back.
Knowledge@Wharton, 2008
14x
More
Growth
Aim to Win Market Share
• Companies that gain share during
downturns historically keep that
increased share when the economy
bounces back.
• The tough times that businesses are
encountering today could actually set
you up for a promising future tomorrow.
Knowledge@Wharton, 2008
Similarly, recent studies out of Kellogg’s
School of Management and Penn State
conclude: A decade later, aggressive recession
advertisers increased market share
2½ times the
average
for all businesses during the
post-recession.
http://my-creativeteam.com/blog/?p=873; Tough Times Call for Tough Marketers
Your brand is for life, despite
economic downturns
David Sable, chief operating officer of
Wunderman, a prominent brandbuilding agency, warns:
“If companies cut deeply
into advertising and
communications in a down
period, the cost to regain
share of voice in the
market once the economy
turns around may cost four
or five times as much as
the cuts saved.”
Knowledge@Wharton, 2008
Everyone is trying to get a piece of the pie.
Building value is going to
separate you from your competitors.
To compete in a down economy and gain market share,
highlight what you do best and be sensitive to the needs
of your best customers. Show the customer what you
have that your competitor doesn’t. Remember,
customers are looking for value and benefits.
Ezine articles, Peter Michund
Marketing “Do’s” in a Tough Economy
1. Maintain Quality Customer Service
2. Gain Market Share at Your
Competitors’ Expense
3. Fine Tune Your Message to be
Sensitive to Buyers
4. Increase Your Visibility
5. Create Synergy Among Marketing
Mediums
Marketing “Don’ts” in a Tough
Economy
1. Be smart and thrifty, but don't panic.
This, too, shall pass.
2. Marketing is muscle, not fat. Be careful
about cutting it.
3. Don't lose focus by chasing business
you wouldn't normally want.
4. Use discounting carefully and
deliberately.
Five Marketing “Don’ts” in a Tough Economy; BusinessWeek, July 11, 2008
Most importantly,
DON’T GO DARK.
Now is the time to build market share and be
positioned for the future.
As the market tightens up, the best positioned
players will survive and thrive.