Organizations usually cut back on the cost of marketing during an economic recession. However, it would surprise you to know that one of the best times you actually need to advertise your brand is during a recession. Marketing and sales expert, Rhett A. Cunningham agrees that companies that increase or maintain advertising during difficulties in the economy will succeed when the economy recovers again. This is due to the fact that, during an economic recession, your competitors may possibly be investing less in advertisements or marketing. Do not forget that customers get to notice your message, logo, and your name more during this time – and they will remember it even after the economic recession.
Research shows that economic downturns can badly affect advertising. For instance, in the 1st section of 2009 (immediately after the 2008 recession), advertisements within the U.S. decreased by an impressive ten percent. According to researched data, what many business people didn’t immediately realize, is the fact that, continuity in advertising and marketing (including publicizing products!) is necessary during a downturn and actually has a tendency to benefit a company.
What then makes small business owners want to reduce their budget for marketing? Certainly, everyone knows what the reply to this is. The business enterprise doesn’t have just as much money as they used to have, however, their costs still need to be compensated plus the settling of accounts. Therefore, an entrepreneur will think of cutting costs to be able to continue working.
This is something that has been revealed in past recessions. According to a study of more than 600 companies the ones that increased or maintained their expenditure for advertisements within the period of 1981-82 economic recession experienced average sales of two and a half times faster as well as growth over the next 3 years. This growth was faster than that of those businesses that did not advertise. In fact, these numbers according to Rhett A. Cunningham are not really surprising. This is to say simply that you should advertise both when in difficult times and in good times. No matter the times, there are loads of advantages to marketing.
Whenever you decide to cut back on your advertising activities, be ready to face not only low brand recognition but also reduced sales for the next couple of years. Customers normally purchase services and products that they trust and is known to them already. And most specifically when they do not have enough money to spend. Rhett A. Cunningham points out that economic recessions are inevitable as an entrepreneur – it’s best to always plan a recovery before it happens. It’s, therefore, good to actually see advertising as an investment rather than an expense.
Discover new ways to present the value your company or products brings to clients. This could be your sales services instead of placing your focus on price. In fact, when you lower your price, it tells your clients that what you are actually offering them isn’t worth that much.