Asserting marketing assets properly in an economic recession can be the making or breaking of a company. When everything on the news and everything you hear around the office sounds gloomy about the economy, you must question whether you are using more logic or emotion in your marketing decisions.
Regardless of the industry, we are all in the people business. When people are involved, it is easy to let emotion cloud logic, and this is very commonly seen in marketing during an economic recession.
Growing Market Share in Recession
Economic recession often provides the clearest path to expanding your market share. When the economy is strong, competitors are strong, too. Being persistent in your marketing is key to making it through a recession and growing your market share while competition is weakened. It is important to remember that you are not alone. You hear all of the miserable failures around you, but do not forget that all of the gloom and doom also includes your competition. Think of it like a staring contest. It is a test of will, and if they blink first, you win.
When people lose their wits to the point of cutting their marketing efforts, it serves only to worsen their market position. Looking back to the Great Depression, there are many lessons to be learned from companies who achieved success by continuing and even expanding their marketing efforts. As an example, Amana Appliances saw huge success coming out of the recession, because they appealed to the American housewife, and gave her something to feel good about even during the worst of times. There is always success in a recession, if you seek it, and if you continue to invite prospective customers to do business with you.
A recession offers much opportunity if you are persistent. You can cut costs in many ways, but if you eliminate your marketing, you eliminate your market. Remember what pays you, and remember why you spend money on marketing in the first place.
Redistribute Your Marketing Efforts
Evaluate your marketing, and redistribute it if needed. Tough times call for smarter marketing. Successful companies are moving their marketing away from television, radio, and print and focusing their efforts on the Internet. Cost per exposure and available customer reach of Internet marketing is far superior to any other marketing. According to widely accepted statistical reports by Nielsen NetRatings, Zenith Optimedia, and others, the Internet accounts for nearly half of the media intake of the average consumer. This quickly growing trend can be seen in many ways, and not the least of which is the 15.2% increase in Internet ad spend in the first half of 2008 while television, radio, and print marketing each took double-digit losses industry-wide.
Cutting Your Marketing Budget
Cutting the marketing budget is a common knee jerk response to economic recession. This reaction to the economy defies logic. After all, if you did not need the marketing, why were you buying it in the first place? Were you spending money on marketing because you had so much business that you just needed an extra tax deduction? Of course not. You invest in marketing because you want more business. For most companies, marketing is the single most important investment they will ever make. Only when the desire for more business subsides should you cut your marketing.
Author Mark Murnahan is the Chairman and CEO of YourNew.com, Inc. and provides SEO consulting services to companies and non-profit organizations. Mark Murnahan may be reached toll free at 866-A-Web-Guy (866-293-2489) for consultation.
