One of the first things businesses frequently reduce is their marketing budgets when the economy weakens and business conditions are uncertain. On the other hand, if you cut down on marketing during a recession, your presence will decline both online and off, which will make it easier for rivals to fill in the gaps and take advantage of your reduced visibility.
During an economic boom, practically any business can easily turn a profit, but to continue making money when difficulties arise, a company needs to have strong market knowledge that is understanding the ways in which consumerism evolves while having a forward-looking perspective are essential for marketing success during a recession. In 2009, it seemed doubtful whether the auto industry as a whole would be able to break even. Nobody was purchasing automobiles, and unemployment was over the roof. Hyundai boosted its marketing in response by purchasing nine commercial spots during the Super Bowl and the Academy Awards, as well as funding a marketing campaign that was centered on the needs of the consumer. It’s not necessary to fundamentally alter your target market or strategy in order to market during a recession. It involves reassessing consumer behavior, which is likely to change during this time and modifying your strategy accordingly. Additionally, remember your market share and share of voice. These metrics are used to assess how much of the market you have saturated and how far you have spread your reach.
J. Wesley Rosberg, Senior VP at Meldrum & Fewsmith once said “I am yet to see any study that proves timidity is the route to success. Studies consistently have proven that companies that have the intelligence and guts to maintain or increase their overall marketing and advertising efforts in times of business downturns will get the edge on their timid competitors.” Increasing your marketing spending may seem paradoxical, yet it will benefit your business greatly. You boost your chances of succeeding in your industry as you effectively reposition your goods or services to answer current consumer problems. This will make your business a valuable resource for clients during a trying period.
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