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With the market getting tougher and budgets being slashed, we take a look at how the downturn is affecting the industry, and how a few clever marketing techniques can help to buck the trend!
Bill Gates summed up a forward thinking approach to marketing in a recession when he stated that if he was down to his last dollar, he would spend it on marketing!
A further example of this takes us back to the 1930’s, where at the time, Coca Cola were a small, relatively unknown soft drinks company, in a market then dominated by Moxie.
Once the recession hit, Moxie felt it inappropriate to advertise, and subsequently cut their marketing spend substantially. Coca Cola had a different take on the situation and instead increased their marketing spend, moving forward with a positive message, making coke the ‘perfect pick me up’! The rest is history!
The first thing to understand in a recession is that people don’t suddenly stop buying; they simply buy more safely. Businesses advertising with a positive message often find an increase in sales and consumer confidence, helping expand their business, create stability and gain market share.
This shows there is a real need for communicating effectively to your customers, and making them realise that you’re still there and ready to provide them with a great product or service. Customers that notice you fall quiet in a recession may smell failure, which adds to the pressures of a recession.
Marketing strategies also need to adapt to the current climate, and promote the ideals that customers are looking for, some of which could be stability, ability to adapt, tailored offerings and so on.
Quite often there is a temptation to discount, which can bring short term sales, but lead to longer term issues and decreased perceived value.
The overall outcome is that with the right creative, imaginative marketing campaign, along with the right budget, the recession can actually pose a great opportunity to companies, rather than a threat!