Marketing in a downturn
In a recession the majority of small businesses choose to cut their marketing budgets completely. This is a direct result of a sharp decline in their sales as marketing is seen as a luxury which is ill afforded. However this can be counter productive as it is critical to maintain awareness over the competition at all times. In a downturn larger businesses can have huge advantages over the competition especially when the competition reduce their marketing spend entirely.
Small businesses can really begin to suffer in a downturn if they cease to conduct all marketing activities as they are effectively reducing their consumer awareness levels. Consumers who are used to seeing a company’s brand advertised may think that the business has ceased trading or may even just forget that they exist. Research has shown that any business that has continued to market itself effectively in previous recessions has risen the crest of the wave once the upturn has arrived.
It can also be argued that more money should be invested in marketing during a downturn to retain your customers, maintain your brand and most importantly to protect your business. If you can figure out a cost effective way to maintain consumer awareness levels during these difficult times then your customers will remain very loyal to you as markets recover. I would strongly recommend that you take your marketing very seriously, don’t just switch it off just because times are tough!