1. Because your competitors will. The knee jerk reaction to the recession is to cut advertising. The classic example from the Great Depression is Ford and Chevrolet. Ford was outselling Chevrolet considerably at the outset of the Depression. Ford reduced advertising when the economy plunged while Chevrolet moved along with an aggressive marketing plan – and they virtually switched positions within the marketplace.
2. Because a market presence is essential. Companies that disappear from the public eye realize a negative outcome with current customers – it’s a sign to the customer that the company is weak and unstable. The absence breeds fear and distrust in their minds. Many businesses pull funding from ‘non-essential’ expenses and make the mistake that marketing is one of them. But, if you aren’t being ‘seen’ by potential customers, where is the business going to come from? How will it grow? What does it say about the state of your business?
3. Recession does not equal complete business failure or dissolution. People still spent money during the Great Depression (and through every economic recession this country has experienced). How will they know to spend money with you? As we all know from Marketing 101, people buy products because, among other reasons, they like the image and message behind a product – and marketing is your mouthpiece.
The businesses that boomed during the 1930’s did so for one reason and one reason only: the did not reduce, and many expanded, their advertising efforts. Proctor & Gamble is a great example of a company that increased ad spending throughout the Great Depression, and every recession since, and has seen consistent revenue increases as a result.
4. During an economic downturn, people are desperately looking for security, safety, savings, deals, good things, distractions. Figure out how your company, services, products and your message can communicate and deliver these things. Be part of the solution – this is an opportunity.
Look at the movie industry. The last few weeks have brought record numbers for big screen openings; people are spending money at the movies. Consider the reasons why. Connect to those reasons with your marketing message.
5. Think about another scenario when a business might not have a lot of money but needs to build the business. During the beginning or start-up phase of any business – when funds are likely low – marketing and promotion is key. No one can hire you or use your goods and services if they don’t know who or why you exist.
6. The recession will end. And the best place for you to be at that point is still in the game. Still working, having been creative, having learned – and still operating and visible. Imagine the message you’ll send to customers as we pull out of the downturn.
7. You have your own mind. Apparently, the companies that fared the best during the Great Depression are those that paid absolutely no mind to it. They charged ahead, believing in their product, understanding that their customers still needed them. Fake it till you make it? Perhaps. I prefer to think it’s a matter of attitude, optimism and fortitude.
Great post! Tough nut to swallow sometimes but I agree, it will keep you one step up when the economy turns around.
I agree. It’s easy to curl up in a fetal position and cry until the nation’s financial woes subside. But that will get your business nowhere.
Good advice, not only is this the wrong time to reduce marketing, but a recession may create new opportunities worth pursuing.
Thanks for posting the article, was certainly a great read!
Good writing. Keep up the good work. I just added your RSS feed my Google News Reader..
Matt Hanson
I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!
All these are so true. When the tide turns you want to be one of the ones on top. That’s for sure.
Julie these are terrific and I’m definitely going to share with others.
Great reminder.
Janine
Great post!
The thing is we have been in this recession for over a year and businesses kept chugging along. You can’t freak out and stop spending just because it is now “official”. I work with small businesses and it is crucial to their survival to keep going – or they will go away. I am just blunt about it. – Great post – Thank you!
Many companies (especially small businesses) are afraid of failing during a recession so they stop marketing to save money. The problem is that stopping marketing only makes it more likely that an organization will fail.
The Ford example proves why you want to keep your company’s name and image out there. You want your company to be thought of as the stable presence in your industry! Great post!
These reasons make a lot of sense. Astute post as usual!
SPECTRUMUNIFORMS.COM IS DOING EXACTLY WHAT THIS ARTICLE IS SAYING,
THE ONLY WAY TO GET OUT OF A RECESSION IS TO KEEP SPENDING AND BUYING PRODUCTS,THIS IS THE ONLY TO GENERATE NEW JOBS .WE ARE DOING GREAT OUR SALES ARE UP ,IF YOU CAN TRY TO PUT AS MUCH $$$ BACK INTO THE MARKET.