Patty Hughes
The current economic climate has small businesses understandably concerned.
Between the impact of COVID-19 and the stock market decline, business owners see a significant slowdown of business and, as a result, are looking to cut costs as quickly as possible. While marketing may seem the obvious choice, stopping marketing efforts is a mistake that can prove costly down the road for small businesses.
Consider this. There have been several studies that point out the advantages of maintaining or even increasing marketing budgets during a weaker economy. Those marketers who maintained or grew their marketing increased sales and market share during the recession and afterward.
Most competitors will quickly reduce marketing to save money, a short-term solution. Those business owners savvy enough to think long term will continue marketing, making their marketing message stand out and remain top of mind when consumers are ready to spend again.
This lesson goes back to the Great Depression. Back then, Post was the leader in the cereal industry. During the Great Depression, Post cut back their marketing considerably, while Kellogg’s doubled down, investing in more radio time and introducing a new cereal, Rice Krispies. Kellogg’s profits grew by 30 percent during the depression and became the new leader in cereal.
Harvard Business Review reported that companies that continued to advertise during an economic downturn were 20 percent ahead of where they had been before the recession.
Another reason to keep marketing efforts intact is the affordability of marketing during an economic downturn. Ad costs go down when demand goes down. Inventory for ad space in print and online become more readily available and may be priced right to sell. This same concept may apply to almost any kind of advertising: magazines, newspapers, billboards, radio, TV, etc. Small business marketers would be well-served to take advantage of these opportunities while their competitors sit on the sidelines.
Regardless of how the economy is doing, marketing is a critical component to maintain and grow a small business. Marketing during a recession will convey strength and reliability to prospects and customers alike. It’s important to keep marketing in front of both to generate revenue.
Strategic Marketing Services provides comprehensive marketing services to small business owners who need access to marketing expertise without the expense of having a dedicated marketing professional on staff.
Visit azstrategicmarketingservices.com to get a free marketing quote for your small business.