Marketing in a Recession – 4 Rules To Live By
When a recession rocks the economy and profits start to decline, businesses look for ways to decrease spending. One area most often affected by such cost cutting is marketing.
This post outlines some methods that companies can use to adapt their strategies of marketing in a recession to meet their consumers’ needs and ensure their own survival during economic hard times.
Spend More Money
This may sound counter-intuitive, but the truth is that the trick to making money under recessionary conditions is to keep investing!
Companies that maintain or increase their marketing and advertising efforts during a recession while their competitors cut back often see a dramatic return on their investment.
On the other hand, those companies that decrease marketing in a recession often see parallel decreases in sales as well.
Instead of limiting funds, companies should re-evaluate their current marketing strategies to figure out what is and is not working. Redesign advertising campaigns and reforecast product demand wherever necessary to generate new consumer interest.
Embrace the Customer
When marketing in a recession, companies also need to know how their customers are defining value.
It’s out with the caviar and in with the fish sticks as recession customers become increasingly cognizant of certain products’ pricing.
Respond to the new needs of their customers by downplaying, or even eliminating, marketing for products that are not selling as well as they did in the past.
Adjusting marketing strategies to not only attract new customers, but also to promote consumer loyalty by featuring temporary price promotions or credit extensions can also prove beneficial to almost any business.
Locate New Marketing Outlets
A recession can also provide the perfect time to explore new areas of marketing. One new area that is rapidly gaining popularity is social media marketing through web sites such as Facebook and Twitter.
Once companies develop Facebook pages and begin to accumulate “fans,” friends of those fans will also receive a notification prompting them to check out the company.
This feature helps generate interest in those companies and exposes them to an entirely new audience that otherwise might not have known they existed.
Twitter feeds not only allow companies to post updates for their products and promote special sales, but they can also act as a form of customer service. Consumers post questions to the company’s status and receive an immediate response.
Oh, did we mention these services are absolutely FREE!
Against the Odds
Just because the economy is in a recession does not mean your company’s marketing and profits have to suffer.
To be successful and pull your company through a recession, maintain your marketing budget, but consider re-evaluating old marketing strategies.
Learn your customers’ needs and how to effectively market to them while exploring new media outlets to reach to new audiences and continue boosting sales.
Jacoby Grows Companies
Here at Jacoby Consulting, we have worked with hundreds of small to medium sized businesses for a common purpose: to grow sales and earnings.
Our consultants have an unmatched track-record of success, helping more than 95% of our clients pump up their bottom line significantly.
"We worked with JACOBY when we were putting our company together. We are now two years old and thriving."
Elizabeth Scarborough, President, Simpson Scarborough
If you’re looking for marketing ideas to implement during the recession, or are simply looking to increase your company’s earning and profitability, call us at 410-744-3900 to set-up a free consultation.
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