Advertising in Tough Economic Times

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Advertising in Tough Economic Times

• The answer to a down market is not to cut
  spending, but to practice smarter marketing.

Barry Silverstein, Brandchannel.com
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• No matter how deep the recession is or how long
  it lasts, it's the perfect opportunity to become
  aggressive and grab market share as competitors
  scale back their marketing efforts.

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Even though consumers are cutting back, they are
finding ways to maintain their quality of
life.Two examples

• According to CNNMoney.com,many are leaving the
  car in the garage and staying home. A whopping
  50 of Americans plan to buy an HDTV in the next
  year.

• Consumers are refusing to give up entirely on
  vacationing. Even in these tough times, 59 of
  Americans plan to take a trip of 100 miles in
  the next six months. They just plan on
  closer-to-home trips Epcot instead of Europe.

Ezine ArticlesAdvertising in Tough Economic
Times, by Peter Michund
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• Many Businesses IncreaseAdvertising in a Tight
  Market
• Why?
• Downturn Brings Opportunities

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An Aggressive Approach Will Pay Dividends

• A McGraw-Hill Research study showed that four
  years after a downturn, companies that maintained
  or increased marketing communications during the
  economic slowdown typically experienced 14 times
  more growth than companies that cut back.

Knowledge_at_Wharton, 2008
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Aim to Win Market Share

• Companies that gain share during downturns
  historically keep that increased share when the
  economy bounces back.
• The tough times that businesses are encountering
  today could actually set you up for a promising
  future tomorrow.

Knowledge_at_Wharton, 2008
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• Similarly, recent studies out of Kelloggs
  School of Management and Penn State conclude A
  decade later, aggressive recession advertisers
  increased market share
• 2½ times the average
• for all businesses during the
• post-recession.

http//my-creativeteam.com/blog/?p873 Tough
Times Call for Tough Marketers
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Your brand is for life, despite economic downturns

• David Sable, chief operating officer of
  Wunderman, a prominent brand-building agency,
  warns
• If companies cut deeply into advertising and
  communications in a down period, the cost to
  regain share of voice in the market once the
  economy turns around may cost four or five times
  as much as the cuts saved.

Knowledge_at_Wharton, 2008
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Everyone is trying to get a piece of the pie.
Building value is going to separate you from
your competitors.

• To compete in a down economy and gain market
  share, highlight what you do best and be
  sensitive to the needs of your best customers.
  Show the customer what you have that your
  competitor doesnt. Remember, customers are
  looking for value and benefits.

Ezine articles, Peter Michund
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Marketing Dos in a Tough Economy

• Maintain Quality Customer Service
• Gain Market Share at Your Competitors Expense
• Fine Tune Your Message to be Sensitive to Buyers
• Increase Your Visibility
• Create Synergy Among Marketing Mediums

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Marketing Donts in a Tough Economy

• Be smart and thrifty, but don't panic. This, too,
  shall pass.
• Marketing is muscle, not fat. Be careful about
  cutting it.
• Don't lose focus by chasing business you wouldn't
  normally want.
• Use discounting carefully and deliberately.

Five Marketing Donts in a Tough Economy
BusinessWeek, July 11, 2008
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• Most importantly,
• DONT GO DARK.
• Now is the time to build market share and be
  positioned for the future.
• As the market tightens up, the best positioned
  players will survive and thrive.