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Marketing in a Recession: Things to Remember
By Les Binet, Adweek.com, 2 Feb 2009
1. Cut the right costs: If you do have to cut costs, make sure that you cut the right ones. An analysis by PIMS (Profit Impact of Marketing Strategy) of how over 1000 firms have reacted to previous downturns shows that some cost-cutting strategies are more profitable than others.
2. Cutting adspend will reduce your income: Cutting the ad budget is a quick way to cut costs, but beware there is a penalty to be paid. Research shows that firms that cut adspend during a recession typically see sales and income fall by 20-30 percent over the next two years as a result.
3. A recession is both a threat and an opportunity: The worst-case scenario is a marketer lowers an ad budget while a competitor increases his. The literature is full of examples of brands that have perished this way. But the flip side is that a recession can be a marvellous opportunity to deal competitors a killer blow.
4. Emotions are the key to brand strength: The key to maintaining a profitable brand is not to offer discounts or buy one, get one free promos, but to build and maintain a strong emotional bond with customers.
5. Aim for fame: Word of mouth is a powerful amplifier. To get your consumers talking, you need to do something remarkable. |