WHY ADVERTISING YOUR BUSINESS IN A DOWN ECONOMY IS JUST PLAIN SMART

The news media loves to dump economic doom and gloom on us daily. As we sweat through what may be later known as the recession of 2008, it’s important to keep in mind the opportunity that’s present at this point in time.

Opportunity? I’ll bet that every bone in your body is telling you that the current economy provides anything but. Luckily, there is over 80 years of well-documented research on the critical question of marketing during a recession that can help guide you and your company through these tricky times.

Cycle after cycle since 1923, many big brains have examined the periodic evidence and reached the same conclusion: companies that invest in marketing during a down economy come out ahead. Whether it’s sales, profits, market share, return on capital or total market value, those that spend (or invest) in advertising end up better than the cutters.

Easier said that done, right? I understand the reality; we have a budget to manage with our business too, and we need to be smart with it. On the surface, marketing and advertising seem like easy things to cut back on. “I need to keep the phones on more than I need to place an ad here or set up a booth at that home show,” you may say to yourself. “I can re-start my ad campaign next year.”

The problem with the logic is that effectively marketing your business, even in a recession, is what brings in new sales, which in turn pay the bill to keep the phone on. You need to stay visible, so that you have the image of being stable, and you’re on your prospect’s mind when they need your goods or services.

Another reason to keep advertising going strong is that you may have a chance to grab market share, and even dominate your market. Professor John A. Quelch of Harvard Business School says “It is well documented that brands that increase their advertising during a recession, when competitors are cutting back, can improve return on investment and market share at lower cost than during good economic times.”

Look at it like this; if 10 people are all talking to you at the same time, it’s overwhelming. It’s hard to understand what anyone is saying. But if 9 stop talking, suddenly the one person who’s still talking can be heard loud and clear.

WHAT YOU CAN DO

• Focus on your core values: Reinforce your brand values with marketing that uses strong and consistent messages. Remind customers and prospects why you’re different… and better.
• Market to your constituency: Define and communicate to your optimum market. Whether that is homeowners with high income, baby boomers with bad vision, or fondue lovers, determine who purchases your product and find marketing that specifically targets them.
• Stay consistent with effective advertising: The long-term benefits are cumulative, and therefore hard to completely measure. If it’s working, stick with it, and over time the rewards will be even greater.