Marketing During Recession: Survival Tactics

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Marketing During Recession: Survival Tactics

By | November 2012
Page 1 of 8
Marketing
During
Recession:
Survival
Tactics
It’s been proven that it
is sound advice to spend
more on marketing
during a recession. But
many marketers will find
this advice impractical.
For those that don’t have
extra money available,
what tactics can be used
to weather the storm of
tough economic times?

MILLWARD
May

BROWN’S

POV

2008

As we reported in our earlier POV — Marketing in Recession: To Spend or Not to Spend? — the general learning suggests that increasing marketing spend during times of recession can produce long-term gains that more than compensate for the investment required. The explanation of this phenomenon lies in the established relationship between share of voice (SOV) and share of market (SOM). When a brand’s share of voice is greater than its share of market, it is likely to grow its market share in the coming year. Therefore, companies that increase their marketing investment when most others are cutting back have an opportunity to substantially improve the standing of their brands. However, for a variety of reasons, few companies, even those with the financial resources to do so, will actually put this learning into practice. When recession looms, most will reduce spending to shore up the bottom line. But even companies that can’t (or won’t) spend more can find ways to do more with less. A recession, therefore, can impose a discipline on marketing that is beneficial to brands in a variety of circumstances.

During recession it is crucial to question what each element in your marketing plan is intended to achieve. How will it encourage brand loyalty? What barrier to purchase does it address? Will it make the brand seem worth paying more for, or will it create a belief that this is a cheap brand? Because the stakes are higher when money is tight, you need to feel confident that your investment will provide a good return.

The key to success during a downturn is maintaining focus. Keep your wits about you and...
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