In the current economic climate thoughts turn to cost cutting and cost-effectiveness in all aspects of business. Advertising and marketing are often honed in on and their effectiveness questioned. The old adage ‘I know half my advertising works, but which half’ still applies, but beware the consequences of burying one’s head in the sand and hoping that customers will still come and that, despite all the indicators to the contrary, there is no economic downturn after all. Your aggressive competitors will not entertain such thoughts, rather, they will forge ahead and take steps to solidify their market share and gain new customers.
Marketing a business is the key to survival, especially in a world where consumers are bombarded with a myriad of choices. It is a fact that companies which hold or increase their advertising spend in periods of economic downturn are assured of an increase in sales and a satisfactory maket share, pre and post downturn.
By maintaining or increasing a marketing spend at this time companies should reap benefits as follows:
- Hold their position as a serious player in the market place, countering competitors who may be entering that space.
- Advertising and marketing will contribute to the bottom line in terms of additional sales – it should not be seen as a cost to business, rather an investment.
- Stand out as a business intent on doing good business with great products – for now and into the future.
- Project an image of stability in an otherwise volatile market – perception is often reality.
- Through its advertising, marketing and public relations a company can reassure its customers and suppliers, copper-fastening its reputation for the provision of quality products and services.
- Businesses hold great store in building up a brand, disappearing off the radar leads customers to question your very existence and future viability.
- Reticence by competitors to advertise in a downturn leaves the door wide open for canny companies to dominate in the sector – a dumb priest never got a parish!
In summary, customers have fewer choices if businesses fail to promote themselves, therefore those who showcase their products and services reap the benefits.
Lastly, time is money. Decide on your budgets, consider how using a communications agency can save you time and money and outsource your marketing/advertising/pr function.
Choose an agency that is reputable and well connected in the marketplace, prepared to listen, drive a hard bargain on your behalf and represent your Company in a professional manner, adding value to your brand.
When times are good, you should advertise; when times are bad, you must advertise.