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?
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... [continues]
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(2012, 11). Marketing During Recession: Survival Tactics. StudyMode.com. Retrieved 11, 2012, from http://www.studymode.com/essays/Marketing-During-Recession-Survival-Tactics-1247319.html
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"Marketing During Recession: Survival Tactics." StudyMode.com. 11, 2012. Accessed 11, 2012. http://www.studymode.com/essays/Marketing-During-Recession-Survival-Tactics-1247319.html.