Right now, many people are holding tight and bracing for what may be to come. There is a lot of talk about a recession. As a business owner you may be wondering how this will affect your business and what you should do to prepare.
It is common to see companies pull back on their marketing $$ but that is probably the worst thing you should do.
Kellogg and Post During the Great Depression
These two companies took vastly different approaches to advertising during the depression. While Post and many other companies slashed their advertising and marketing budgets in response to the 1929 crash Kellogg stayed strong.
In fact, Kellogg doubled their advertising and marketing budget even though the cereal market was still new. No one knew if or how well the public would embrace the idea of cereal for breakfast. It certainly wasn't the staple it is today.
Kellogg Stepped Up Their Marketing
Nevertheless, the leadership at Kellogg's stepped up and took a chance. They even introduced new products. Remember Snap, Crackle Pop?
Rice Krispies was born in the 1930's with an investment in a new ad campaign. And this was smack in the middle of the depression.
And throughout the depression Kellogg’s experienced a nearly 30 percent rise in profits. Their strategy moved pre-packed breakfast cereal to a widespread, popular breakfast choice. Furthermore, it but Kellogg's on top of their category in the marketplace. And they remain there today.
Your Incredible Opportunity to Increase Sales And Build Market Share
It seems like common sense yet many companies pull back on marketing dollars at a time that history has shown us is the greatest opportunity to grow your business.
1990's- Brands like Jif and Kraft Salad Dressing experienced sales growth of 57% and 70% respectively after increasing their advertising during the recession.
1980's- McGraw-Hill Research discovered sales of companies that advertised aggressively had grown 275% over those that didn’t.
Buchen Advertising tracked advertising dollars vs. sales trends for the recessions of 1949, 1954, 1958 and 1961. Companies that cut back on advertising saw a significant drop in sales and profits. Additionally, after the recession had ended, companies who maintained their budgets were clearly on top.
Spray and Pray Marketing Tactics
I often see this tactic used by new or less experienced marketers. This marketing method is about simply getting your message out to as many eyeballs as you can. The problem with this is you spending a lot of money reaching people who have no interest in your services.
Stand Out With Digital
Digital Marketing allows you to fine target your market. This way you are not wasting your budget. you can reach the right people at a fraction of the cost of traditional advertising. Furthermore, techniques like blogs, video's and other types of educational content will help your company stand out as the expert. And good content will be around forever continuing to grow your business for years.