Why Marketing Should Be A Priority

 

We will provide comment on advertising during a recession and the best way to do it.

 

Why Marketing Should Be A Priority

As you may well be aware, UK media reports revealed that the economy had fallen into a recession at the end of 2023. This understandably caused widespread concern, with the drop in income expected to result in reduced consumer spending. However, while businesses may feel the pinch, they shouldn’t necessarily be looking to tighten their marketing budgets.

There are vital business lessons that can be taken from past recessions. The tracking of 600 companies during the banking crisis of 1980-1985 revealed that brands that kept up their advertising achieved 256% more sales than the competition. It was a similar case during the 2008-2009 financial crisis, with those companies that kept up their marketing gaining 3.5 times more brand visibility than those that cut budgets and waited for things to return to normal.

Such examples go to show that it’s a mistake to make big marketing budget cuts in the hope of surviving a recession. Although some adjustments might be made, it’s best to focus on marketing activities that drive the highest ROI. This can make the difference to customer loyalty and brand awareness during the toughest of financial times.

As Henry Ford said, “stopping advertising to save money is like stopping your watch to save time.”

Outlasting your rivals

There’s a good chance that some of your competitors will have responded to news of the UK recession by reducing their marketing spend. If you follow their lead then you’ll be running the risk of reduced brand awareness and recognition. The change of marketing approach could be taken as a sign that you’re lacking confidence and performing badly. Instead of maintaining loyalty, you could up losing customers, with no guarantee that they’ll come back after the recession.

On the other hand, you could continue to invest in marketing for the best chance of long-term growth. Such an investment could be seen as evidence of your resilience, inspiring the customers’ confidence and ensuring that your brand stays top of mind. You could take the brand awareness to new levels, so that your products and/or services are the the obvious choice when things get back to normal.

The smart marketing approach

Of course, we’re not saying that you should maintain the same level of marketing spend regardless of the conditions and risks. Indeed, now might be the ideal time to review your budget, considering which marketing tactics are likely to be most effective for your business. A look at your analytics might show that your video advertisements are driving a good amount of targeted website traffic. Or perhaps you could have some expertly designed banners printed to give the best impression at upcoming business events.

As at other times, it’s worth applying your customer understanding in the shaping of your marketing campaigns. Discussions and sales reports could reveal that your customers are spending less on certain items or that they have particular interest in cost-saving features. You could build these findings into your marketing, perhaps emphasising your pricing competitiveness and introducing new offers. There should be a focus on the creation of value-adding content, answering customer questions, and helping to address problems.

These marketing tactics may also prove effective during a recession:

• Introducing new deals for budget-conscious customers
• Running highly targeted promotions to limit spending and boost conversions
• Offering rewards for return-purchases and customer loyalty.

Expert advice & support

If you follow the recommendations shared in this blog then you’ll stand the best chance of seeing your business become a rising star rather than a sinking ship during the recession. Whether continuing to invest in SEO, social media, or “real-life” promotions you’ll be able to keep up the momentum that you achieved before the hard times struck.

Thankfully you can count on the support of thefingerprint every step of the way. Drawing on our considerable experience, we’ll help you to identify and implement on-point marketing strategies for the best chance of weathering the storm. Give us a call on +44 (0)7740 348 521 or email design@thefingerprint.co.uk to find out more.

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