Advertising in Tough Economic Times

The answer to a down market is not to cut spending, but to practice smarter marketing.

Barry Silverstein, Brandchannel.com

No matter how deep the recession is or how long it lasts, it's the perfect opportunity to become aggressive and grab market share as competitors scale back their marketing efforts.

According to CNNMoney.com,many are leaving the car in the garage and staying home. A whopping 50% of Americans plan to buy an HDTV in the next year.

Ezine Articles;Advertising in Tough Economic Times, by Peter Michund

Even though consumers are cutting back, they are finding ways to maintain their quality of life.

Two examples:

Consumers are refusing to give up entirely on vacationing. Even in these tough times, 59% of Americans plan to take a trip of 100+ miles in the next six months. They just plan on closer-to-home trips: Epcot instead of Europe.

Many Businesses Increase

Advertising in a Tight Market

Why?

Downturn Brings Opportunities…

14xMore

Growth

Knowledge@Wharton, 2008

An Aggressive Approach Will Pay Dividends

A McGraw-Hill Research study showed that four years after a downturn, companies that maintained or increased marketing communications during the economic slowdown typically experienced 14 times more growth

than companies that cut back.

Aim to Win Market Share

Knowledge@Wharton, 2008

• Companies that gain share during downturns historically keep that increased share when the economy bounces back.

• The tough times that businesses are encountering today could actually set you up for a promising future tomorrow.

Similarly, recent studies out of Kellogg’s School of Management and Penn State

conclude: A decade later, aggressive recession advertisers increased market share

2½ times the average

for all businesses during the post-recession.

http://my-creativeteam.com/blog/?p=873; Tough Times Call for Tough Marketers

Knowledge@Wharton, 2008

Your brand is for life, despite economic downturns

David Sable, chief operating officer of Wunderman, a prominent brand-building agency, warns:

“If companies cut deeply into advertising and communications in a down period, the cost to regain share of voice in the market once the economy turns around may cost four or five times as much as the cuts saved.”

Ezine articles, Peter Michund

Everyone is trying to get a piece of the pie. Building value is going to

separate you from your competitors.

To compete in a down economy and gain market share, highlight what you do best and be sensitive to the needs

of your best customers. Show the customer what you have that your competitor doesn’t. Remember, customers are looking for value and benefits.

Marketing “Do’s” in a Tough Economy

1. Maintain Quality Customer Service2. Gain Market Share at Your

Competitors’ Expense 3. Fine Tune Your Message to be

Sensitive to Buyers4. Increase Your Visibility5. Create Synergy Among Marketing

Mediums

Five Marketing “Don’ts” in a Tough EconomyFive Marketing “Don’ts” in a Tough Economy; BusinessWeek, July 11, 2008; BusinessWeek, July 11, 2008

Marketing “Don’ts” in a Tough Economy

1. Be smart and thrifty, but don't panic. This, too, shall pass.

2. Marketing is muscle, not fat. Be careful about cutting it.

3. Don't lose focus by chasing business you wouldn't normally want.

4. Use discounting carefully and deliberately.

Most importantly,

DON’T GO DARK.

Now is the time to build market share and be positioned for the future.

As the market tightens up, the best positioned players will survive and thrive.