All companies need great marketing strategies. Contrary to popular belief, you can still advertise and market successfully even when the economy is slow. A sound advertising strategy allows you to outcompete your competitors.
Moreover, a strong and smart advertising strategy will help you understand your industry’s trends and your customers’ constantly changing habits. It will also allow you to take hold of your local market. By staying ahead of the game, you can put more effort into other areas of your business without having to worry constantly about what will happen next. If you need help managing debt, here is a great article about consolidating debt so that it does not affect your personal life, or business!
The History of Marketing in a Recession
In a tough economy, both small businesses and large, robust companies feel the pain. That said, small business owners usually file for bankruptcy more than large companies, because they lack the cash and physical capital assets that many large companies may have at their disposal. When influential small businesses take major hits, communities suffer; entrepreneurial spirit decreases.
To combat this problem, companies may cut back in advertising and marketing. Going back to the 1920s, Roland S. Vaile found that companies that did not advertise during the recession lagged 7% than they were before the economic downturn. During the 2008 recession, advertising went down by 13%. Ads in newspapers went down the most followed by radio, magazine ads, TV, and online. Regardless, those who were kept fresh in their customers’ minds did well in their local markets while
others cut back on advertising and waited for the economy to clear.
How These Companies Won the 2008 Recession
Samsung: In spite of the 2008 recession, Samsung reinvigorated its brand. They focused on researching and developing new products. The company hired experienced marketers from other well-known companies like L’Oreal. They created a new marketing strategy that rebranded itself with the release of the first Galaxy phone in 2010 going against the Apple iPhone. Samsung went from number 21 in the 2008 recession to number 6 in brand value in Interbrand’s global list.
Amazon: Amazon focused on innovation and the customer experience. They developed their line of Kindle tablets, which led to an increase of 28% in e-book sales during the 2009 Christmas season. It expanded their market and further branded itself as a provider of low-cost products.
Groupon: Groupon took advantage of the 2008 economic conditions by offering people what they wanted and needed the most: great deals. Soon, Groupon became the ultimate platform for companies looking to offer goods and services at a discount to customers who may be under economic pressure.
How to Market Well in a Tough Economy
All three companies took advantage of the economic downturn and created legacies in their own right. As a business owner, you should follow these practical marketing guidelines to help you weather tough economic conditions and stay relevant in your industry and community:
- Keep your business’s mission, values, and overall vision. When you first started building out your business, you had your vision and values. Stay committed to what brought you into your business in the first place. Listening to customer feedback and taking in the best talent from your team for better opportunities on the horizon are the first steps to reinvigorating your brand and your business.
- Improve your products: Look at your products and services that may need improvement or even to be cut from your business. Improve on the products and services that are doing well, have the best
customer feedback, and have the potential of long-term growth within your business. Which ones would fit your business best? Which ones do you think no longer serve your business and customers? Any small changes can help increase your revenue and profit and even improve your overall brand.
- Find your niche: Economic conditions foster the best environment for new ideas. Think of ways to reinvent your brand or add to your brand, which may include adding more products or launching new
services. This way, you may find that your business may have a new turnaround and a new niche in your community.
- Innovate your business: Samsung, Amazon, and Groupon have teachable successes – don’t be afraid to try a unique approach to reaching new customers. Giving your customers opportunities to express their input about your new products and services is crucial to creating great customer experiences. It can help bridge your business and your customer base.
One excellent way to connect with your customers is through digital marketing. That’s because digital advertising platforms offer more personalized and immersive experiences to your customers. Great leaders know that new branding, products, and a professionally designed website are keys to doing well in a tough economy. Be sure to capitalize on this trend today!