Marketing During Recession

Using the Recession to ‘Fertilize’ Your Business Growth

The One Thing you Must Do Now to Increase Your

Business Post-Recession

 

 

Economic recession is a time of tremendous business opportunity for those who are situated to take the necessary steps to benefit.  Conversely, those who neglect growth when times are tough, payer a tougher price.

I was watering my lawn yesterday, and noticed the grass is really weak.  Roots don’t seem to have the depth they used to… the St. Augustine I have always carefully nurtured was neglected last year and is thin, weak and trampled.

Last fall, I neglected something I shouldn’t have.  I didn’t put down the root builder fertilizer I always have before, so the roots could deepen and strengthen during the cold, dormant months.

I have some work to do to rebuild my lawn.

Staring at the scraggly lawn brings to mind the fallout that comes when we respond the wrong way to recession.  It’s instinctive for businesses to cut back expenses in the face of a failing economy.

Expectation of reduced revenues is met with reduced spending, and the marketing budget is often the first to go.  The problem with that is that the businesses who cut off their lifeline by withdrawing from marketing, are the ones that weaken and often die during or after a recession.

I recently read an article in 4 Hoteliers Hospitality, Hotel and Travel News, by Robert Crostin and Patrick Cahill.   They made the point that sustaining marketing during difficult economic times is about more than just maintaining the status quo.  There is profitable benefit. So many companies leave the competitive arena during these strained periods, giving those who are marketing less competition and more influence, because there remain plenty of buyers out there. You get more bang for your marketing buck.

Keith Roberts, of PIMS, studied the impact of marketing during a recession vs. cutting back.  He found that firms that increase marketing spending during a recession grow faster than those who cut back, in spite of a sluggish economy.

McGraw Hill reports that B2B companies that increased their marketing expenditures during and after the 1981-82 recession, grew far faster than those who did not.

Meldrum and Fewsmith studied recessions after WWII and found that “advertising aggressively” during recessions, increased both sales and profits over those who did not.

Coopers and Lybrand maintain that marketing during economic difficulty establishes your image as stable, draws business from less aggressive competitors and places your business in position for post-recession growth and strength.

If you haven’t been marketing, start now. The recession will end. Better times are coming.  LIke the squirrels who put away food for winter, be one of the smart ones who are investing in your future now.

Then enjoy the returns on your investment as the recovery begins.

 

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