When a bad economy sets in, many wealth organizations resort to ‘playing safe’ and scaling back or halting marketing initiatives. While this may be a ‘safe’ move in the short term, it may be harder to recoup lost brand recognition when the economy turns. At Fresh Finance, we propose another plan: increasing your marketing. Here’s why.
Supply and demand creates opportunity.
The rationale behind increasing marketing during a slow economy is essentially tied to the basic principles of supply and demand. When most organizations are pulling back, the marketplace becomes less crowded. This economy offers an invaluable opportunity for them to stand out and grab the attention of prospective clients.
Equally, advertising costs traditionally decline across various channels during a slow economy due to decreased demand. Subsequently, when marketing budgets increase, more ad space can be bought for the same amount of money, amplifying overall brand visibility.
Demonstrate strength and stability.
Boosting marketing efforts during challenging economic times can represent strength and stability. Suppose an organization can afford to increase its marketing budget while others are making cuts. In that case, it sends a robust message to current and prospective clients about the organization’s stability in the industry. When the public hears about layoffs at well-known companies, it’s time to push down hard on the marketing gas pedal.
Periods of economic downturn often heighten consumer loyalty, with customers gravitating towards brands they know, trust, and perceive as safe choices. Enhancing marketing efforts at this time can maintain and increase brand loyalty.
It’s an excellent time to try new marketing strategies.
A slow economy allows businesses to experiment and innovate marketing strategies. During boom times, it’s easy to become complacent with strategies that work. But during a downturn, organizations need to think more creatively about how to get through to potential clients. Innovative marketing initiatives can attract new business giving the organization a competitive edge despite a slow economy.
Upping your ‘marketing ante’ can help seize market share.
While it may seem counter-intuitive, organizations should consider the benefits of upping their marketing ante during a slow economy. Such psychology often leads to seizing market share that remains when the economic slowdown ceases, and business begins to grow again, putting your organization at an advantage.
Simply increasing the budget isn’t enough. The trick lies in intelligent marketing and not just more marketing. Incorporating cost-effective methods, such as exploiting social media platforms, utilizing search engine optimization (SEO) techniques, and content marketing, can lead to big wins. Balancing bold moves and wise decisions is vital, as well as taking calculated risks and ensuring every dollar spent turns into a savvy investment that brings in a substantial return.
Organizations must remember that the business landscape following an economic downturn can differ. Those organizations that are noticeable, attractive, and increasing their marketing presence often lead the industry in a recovering economy.
Remember: A well-executed marketing strategy during an economic downturn can be a survival package for your organization.
