Marketing in a recession is a great strategy that makes perfect sense. The key is to take advantage of the economy – by doing more marketing while your competitors are riding out the storm. Here are a few things to consider:
- Maintaining your marketing expenditures during a recession will enable you to capture new business. A recent American Association of Advertising Agencies study documents a strong correlation between sustained spending and increased market share.
- Consumers don’t go away during a recession, they grow more conservative. This is an opportunity for you to encourage brand switching to safer and cost-saving alternatives.
- PIMS (Profit Impact of Market Strategy), developed by the Strategic Planning Institute, compared hundreds of companies’ marketing spend during recessions to share and profit gains during recovery. They found that those that spent in recession did far better AFTERWARD than those that significantly cut or eliminated spending.
- Cuts in marketing investments during a recession have a cumulative negative impact on the long-term value of a brand.
LKCS has a lot of tools that we can put to work for you. From targeted direct mail campaigns to e-marketing solutions, statement marketing/transpromo and branch merchandising, we can help you get the most effective use out of your marketing spend.
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