Marketing your way through a recession
The closer we get the more speculation about Britain’s future there seems to be. No-one really knows what the economic outcomes for the UK will be but the press will make sure there is maximum anxiety throughout the consumer and business world. So whether there is a recession or not we have some great marketing tips that can help.
Marketing tactics IF there is a recession
There is lots of research that shows that those companies that continue with their marketing efforts or even increase their efforts actually do much better than those that cut resources. However, there are things firms can do to help maximise their return on marketing during these difficult times.
Professor John Quelch from Harvard Business School says that customer research becomes even more important in hard times. The more understanding of your clients you can have the easier it will be to adapt your services to meet their needs. It will help refine your marketing messages, making them more engaging and more targeted potentially helping save money on communications or getting a better return on spend.
Focus on values
In tough times individuals tend to look deeper into where they spend they money. Emphasise your company ethos and values helping to build emotional connections with your potential customers. When times are gloomy, the firms that show they are ethical, reliable with strong values will be the brands that people turn to.
Maintain marketing spend
Your competitors will probably be suffering too and will be scaling back their marketing, take advantage in this hiatus in competition and build awareness through your marketing efforts and increase your market share.
Cut your costs – the right costs
Cutting marketing spend will of course save you money but it will also reduce the amount of leads you get. If you do have to cut costs, make sure that you cut the right ones. An analysis by PIMS (Profit Impact of Marketing Strategy) of how over 1,000 firms have reacted to previous recessions shows that some cost-cutting strategies are more profitable than others. Firms that cut manufacturing and administrative costs tend to do well, as do firms that cut spare capacity. However, firms that reduce service and product quality or cut marketing budgets and NPD tend to under-perform.
While many will be looking for bargains, promotions and price cuts are not the best strategy. They tend to provide short-term increases in turnover and margins are reduced, profitability is then effected. In the long-term individuals will resent prices going back to normal when the recession passes. A stronger strategy would be to build brand loyalty and find ways to add value. Package services into bundles to give more without sacrificing margin.
So whatever BREXIT brings the key is not to cut marketing but employ smarter marketing, great advice for any business whether there is a recession or not. So don’t panic keep marketing and it may well turn out to be an opportunity as you scoop up more market share as your competitors go quiet.
If you would like help making your marketing efforts smarter please do get in touch.