It’s Not Too Late to Take Advantage of the Down Economy

Posted on Wednesday, Jun 24, 2009 by Michael Duncan

The economy may be turning around. It may not be. The news varies from day to day. But, for now at least, times are still hard for a lot of us. Which means it is time to step up advertising.

It’s a fact: companies that maintain strong advertising during economic downturns tend to come out the other side with increased market share and a stronger business. Times like these present opportunities for stronger and more aggressive companies that are willing to invest in advertising. And times like these lead to timid companies going away.

The classic example is Moxie Soda, which outsold Coke and Pepsi in the 1920's. During the Depression, times were hard and Moxie decided to cut back on advertising. They began to lose out to Coke and Pepsi. Today, Moxie Soda is a novelty found in a few stores around New England.

Now is not the time to neglect your marketing effort. Increased advertising now can improve your market share at a lower cost than at any other time in recent memory. The reason is less competition. Your competitors are likely cutting back on their advertising. Some of the weaker ones may even have thrown in the towel. With less clutter and competition, it's easier to get your message heard by potential customers. And when the economy starts to pick up and customers start to spend more, it will have been your marketing they have seen and your name they remember.

Customers who did not do business with you before may find that their old source is out of business, or just not top of mind anymore. Customers new to the market will naturally turn to the most visible companies. As the market grows, you will be positioned to capture more of the growth.

On the other hand, if you do cut marketing now, there is a real danger that you will not be able to climb back to where you were, or it may take years to catch up after the economy does pick up. And it will pick up...it always has.

Smart businesses look for advantages in every situation, and someone will get the advantage now. Give us a call and let's make sure it's you.

 

Further reading: Recession Data On The Value of Marketing Through Economic Downturn from Go-To-Market Strategies