Marketing During A Recession
Introduction
We’ve all heard it. A recession is coming. During a recession, consumers turn to cutting non-essential costs. They start saving money and become conscious of spontaneous spending. Economic growth slows down, and consumers keep close tabs on where they are spending money. At the same time, businesses of all sizes tend to scale back spending wherever they can.
We’ve all seen it. The first budgets to get cut during a recession belong to marketing. Fear, uncertainty, and doubt cause leaders to take drastic cost-saving measures to keep their brands safe. It might seem like the right move to decrease spending during an economic downturn or recession, but the opposite is true. Check out these tips for navigating a volatile market.
Plan Ahead
Planning for a black swan event is never a bad thing. When hearing whispers of a recession, ensuring your marketing strategy is adaptable is critical. You should never completely flip the switch. Instead, reprioritize and pivot. During a recession, many of your competitors will reduce spending. It’s important to use this as an opportunity to fill the void. Consider implementing challenger campaigns to strike where your competitors can’t.
Redefine Your Objectives
Set clear expectations. Depending on your product or industry, your sales may take a hit. Use this downturn period to reevaluate your bottom line. Before deploying your next campaign, account for churn you wouldn’t expect. This will help you forecast future growth and ROI on marketing efforts.
Stay in Your Consumers’ Consideration Set
Toning down your marketing efforts will decrease your overall visibility and brand recall. Maintaining brand visibility is key during a recession. While others are reducing spending, staying the course and carrying through a consistent brand presence is important. When brands maintain or increase marketing spend, they can capture white space from competitors during an economic downturn.
Budget Wisely
Efficient allocation of marketing resources is key during economic downturns. Targeted marketing, focusing on the most profitable segments, has become more important than ever. Numerous case studies of successful low-budget marketing campaigns during recessions highlight the art of budget-savvy marketing strategies. Financial analysts and marketing strategists emphasize the significance of wise budget allocation in such times.
Stay Creative
Creative approaches are vital during tough economic times. Past recessions have witnessed some of the most innovative marketing strategies. During 2008, Domino's heavily invested in reinventing its brand by focusing on unique creative, resulting in significant growth. These strategies captured attention and built long-lasting consumer trust and loyalty. Creative directors and marketing innovators provide valuable insights into this aspect, often highlighting the psychological impact of creative marketing.
Build Your Brand
Investing in building your brand during a recession is an investment in the future. During economic downturns, while many companies cut back on marketing spend, those focusing on brand building can capture increased market share and customer loyalty. Brand building will help you accelerate your presence in the marketplace. Effectively tell your story and focus on moments that will build your community. This period will enable you to connect with customers on a deeper level. As consumer spending power becomes more discerning during a recession, brands that consistently engage and provide genuine value are more likely to be preferred.
Seize the Opportunity
Use challenging times to transform your brand. Be sure your marketing plan is always ready to pivot. While other brands are scaling back, it may be a good time to ramp up. Building and implementing recession-proof strategies can be tough. InnerCircle helps brands grow and thrive. Our team is positioned to build and implement bespoke strategies to help propel your business forward in volatile environments. Have questions? We’re here to help. Contact us today to get started.