By Ashlei Jackson, Qlixite
When the economy is struggling, it's not uncommon for businesses to react defensively by cutting their advertising budgets and waiting for the economy to right itself. Studies show that in a down economy, approximately 75% of U.S. companies react this way.
As bad economic times cause consumers to be more selective and value-oriented in their purchasing decisions, this strategy is shortsighted. It makes it difficult for customers to select, and trust, a company that curtails its communication with them. What kind of confidence and staying power is demonstrated by a business that suddenly limits its information and support to its audience?
A down economy can be an opportunity. It is an opportunity for smart businesses to re-energize their marketing efforts and increase market share. Savy businesses can put their money into cost-efficient media channels that deliver growth opportunities and a
positive return on investment.
History has given the U.S. 20 recessions over the last 100 years11 since World War II.
Successful businesses have chosen to use these trying times as an opportunity to create a long-term competitive advantage- to separate themselves from their competitors in the marketplace. Advantages include better media pricing because demand is lower. Businesses can obtain better rates from media outlets allowing them the opportunity for more aggressive market presence without increasing their advertising budget.
Less competition is a key. As their competition chooses to market and advertise less in a down economy, smart businesses who advertise find that their message is more likely to be seen or heard. Less marketing “noise” = more marketing recognition. Over time, such “uncontested” exposure will lead to increased market share and brand recognition leading to increased consumer trust in your organization.
Businesses that refuse to “follow the herd”, and react pro-actively with continued or increased marketing efforts, have a golden opportunity to increase brand recognition, market share, sales, and profits for their organization. Are your ready for a great future?