Tough
economic times are forcing everyone to cut back on spending.
People are buying used cars instead of the newest model. The
"value" brands at local grocery stores are seeing
a sharp rise as consumers loyal to their "name brand"
find themselves switching to save money. Yes, it's true that
in these times everyone must save and make cuts in their personal
life in order to protect themselves for the future.
The
same holds true in the business world. Company's are shortening
hours, minimizing staff, and looking for ways to cut back
on un-needed expenses. During tough times, many companies
shift perspective of their normal advertising practice and
both find themselves in unfamiliar territory and focusing
on trying to wait out the storm. I will not tell you that
all of these companies make it out alive and even more of
them may be weakened by the long wait for the storms end.
"We
are in a major recession, I will not even debate this, but,
in these times, there may be a much larger opportunity for
your company. During economic times like this, there have
always been opportunities for companies that think aggressively."
There
are chances for companies to grow and prosper during these
tough times. The most obvious opportunity is to cross sell
to customers
left by the collapse of competing businesses which
are failing. With competitors failing, or at least cutting
back severely on all scales including marketing, there is
less advertising for specific industries appearing and there
is less competition. If your company is one of the surviving
advertisers, you will have a better chance of being noticed.
"If
the competition cuts advertising spending during a recession,
other companies that stay the course can more easily dominate
local media and see increases in their own brand awareness.
"
The
next mistake companies make is that they fear consumers want
the cheapest products during a tough time. I won't say that
cost is not on a consumers mind in today's market, but more
importantly is value. Prospects have to change the way they
shop in tough times and look for the best value for their
budget. These tough times force prospects to find out if there
is something else out there that will get them all the benefits
of their preferred brand at less cost.
Finally,
customers expect to see special incentive offers during a
recession, and this is the time smart businesses should be
creative in ways to draw in the interest of reluctant buyers.
As we all have seen in the automotive and truck industry,
consumers know times are tough for companies too, so they
will be expecting an “offer they can’t refuse.”
Give them one. .
"Offer
special promotions, sweepstakes, parties, in-house events
and freebies that will reward your potential prospects to
take advantage of this unique time. The deals of your product
and services will likely never be this grand again!"
Keeping
your advertising budgets flowing during tough times will be
hard, I know this myself... However, the advantages available
could very well increase people’s awareness of your
company more than ever. Less choices in your industry will
make you stand out and makes you look more appealing to potential
consumers when the market recovers.
Spending
marketing budgets in slow times is a difficult idea to swallow,
but the return on investment for such perseverance just might
end up being surprisingly more successful than your efforts
in high times.
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