{"id":6651,"date":"2023-03-29T10:52:09","date_gmt":"2023-03-29T15:52:09","guid":{"rendered":"https:\/\/joagency.com\/?p=6651"},"modified":"2024-08-20T08:22:40","modified_gmt":"2024-08-20T08:22:40","slug":"3-tips-for-marketing-during-a-recession","status":"publish","type":"blog","link":"https:\/\/ilfusion.org\/dev\/joagency\/blog\/3-tips-for-marketing-during-a-recession\/","title":{"rendered":"3 Tips for Marketing During a Recession"},"content":{"rendered":"\n

As we continue to watch the economy and signs of a potential recession in a real \u201cwill it happen\/won\u2019t it happen?\u201d scenario, there are a few topics coming up over and over again with J.O. clients. What we’re sharing here is what our team has learned about marketing strategies from nearly 25 years in the marketing business, including past recessions. There are a few marketing tactics to absolutely avoid at all costs in economic downturns. Let\u2019s talk through them now so you\u2019re ready when the time comes.<\/p>\n\n\n\n

1.<\/strong> Slashing Your Marketing Budget<\/strong><\/h2>\n\n\n\n

We get it \u2014 when times are tough, it\u2019s a natural instinct to quickly cut budgets and start to save money where you think you can. The inclination to make advertising budgets \u2014 radio, television, web, social media, etc. \u2014 your first cut can be as knee-jerk as those reflex tests your pediatrician subjected you to as a kid.<\/p>\n\n\n\n

What we’ve seen time and again, though, is that the companies that don\u2019t<\/em> pull back on their marketing spend are the ones that win. A famous example<\/a> of this is Post. Before the Great Depression, they were the top-selling cereal company in the industry. As the Great Depression set in though, the company made sweeping cuts to its marketing budget and Kellogg, a younger competitor, seized the opportunity.<\/p>\n\n\n\n

Kellogg increased spending, ultimately doubling their advertising budget to create new marketing campaigns including radio ads for their brand-new cereal, Rice Krispies. The results? Kellogg profits increased by 30% and the company became the industry leader \u2014 and they have maintained that top spot ever since.<\/p>\n\n\n\n

\"Learn<\/figure>\n\n\n\n

Was Kellogg doubling their spending a risky move? Yes \u2014 but that decision in a price sensitive moment allowed for major brand building and market share growth. They managed to change the cereal industry by upping their marketing costs.<\/p>\n\n\n\n

What to Learn from Post’s Mistake<\/h3>\n\n\n\n

 We can all learn from Post\u2019s mistake: When most of your competitors pull back on their marketing investments, that leaves more space for you to share your message and products. A recession is actually a time to up <\/em>your spending.<\/p>\n\n\n\n

When you consider marketing budgets in a recession, there’s one more thing to consider: not only will competition decrease in a recession, but the cost of advertising may very well drop, too. So, yes, take time to consider what adjustments need to be made, but avoid the quick assumption that in an economic downtown it’s wide, sweeping cuts that will save you. Be ready to up your current marketing budget so you can pick up new ground in market share when others pull back.<\/p>\n\n\n\n

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To learn more about growing your brand’s visibility through marketing media categories, read J.O.’s blog on the topic right here<\/a>.<\/p>\n<\/blockquote>\n\n\n\n

2.<\/strong> Assuming Your Loyal Customers Will Be Back When Things Get Back to Normal<\/strong><\/h2>\n\n\n\n

 What even is normal after the past few years?<\/p>\n\n\n\n

Sticking your head in the proverbial sand and assuming your existing customer base will be there when you pop back onto the marketing scene after a recession will not work. The truth is your clients and customers need to keep hearing from you in an economic downturn because they’re in a similar boat to you. While you’re deciding where to cut costs, they are making decisions about spending habits too. Most consumers will cut spending in this time to ease their own economic stress. To avoid being a part of those cuts, you need to think of new ways to encourage brand loyalty.<\/p>\n\n\n\n

\"Don't<\/figure>\n\n\n\n

Examples of Supporting the Customer Experience<\/strong><\/h3>\n\n\n\n

During the 2008 financial crisis, as consumers cut back on shopping, entertainment and eating out, Groupon<\/a> saw an opportunity to make \u201cnonessentials\u201d more affordable. The company began sending out a daily email full of discounts on goods and services. The impact? Groupon gained a $500 million profit.<\/p>\n\n\n\n

A 2009 Harvard Business Review article, \u201cHow to Market in a Downturn<\/u><\/a>\u201d talks about exactly this and why keeping up with how customers are reassessing their priorities, reallocating funds and redefining value is critical. Don\u2019t let go of your market research in an economic downturn \u2014 keep pace with your clients and customers, reminding them they why chose you in the first place.<\/p>\n\n\n\n

\"In<\/figure>\n\n\n\n

 Remember: This is an opportunity for you to provide stability to your target audience and build an emotional connection by acknowledging the current circumstances and telling your customers you\u2019ll keep showing up and providing what they need. This might mean doing a special campaign that speaks directly to their current woes and customer needs, or creating something entirely new to help meet the moment. Most importantly? Show up for your existing customers and remind them of the value you bring. That will do more for customer loyalty and even raise your profile for new customers in the process.<\/p>\n\n\n\n

3. Holding Tight to What You\u2019ve Always Done<\/strong><\/h2>\n\n\n\n

To review so far, slashing your budget is not the way to go and neither is assuming your customers will stay. Together those two ideas mean it\u2019s time for some innovation.<\/p>\n\n\n\n

Examples of Adjusting Your Marketing Strategies<\/h3>\n\n\n\n

Now that you\u2019ve upped your marketing budget, you need to think about changing things up. Here are a few quick examples from the last recession in 2008:<\/p>\n\n\n\n