When the economy found itself in a recession during the early 1990s, Sam Walton (the founder of Walmart) was asked what he thought simply said, “I’ve thought about it, but I have chosen not to participate.” As business owners, you must adopt Mr. Walton’s stance and continue to market your business during a recession or pandemic.
Don’t Participate in Recessions and Pandemics
There is an old adage that states, “When times are good you should advertise, when times are bad you MUST advertise.” But why should you when all of your competitors are slowing their roll when it comes to advertising and marketing? I have two words for you … NOISE REDUCTION.
A Reduction in Advertising Noise is Good for Your Business
Customers are bombarded with ad after ad every day, minute by minute. When that noise level drops because your competitors are reeling in their advertising dollars, that’s the time for you to kick it up a notch. You’ll find that customers are more engaged when there’s less advertising noise.
Show Your Customers That a Pandemic Can’t Keep You Down
Customers like doing business with companies that are stable. If you’re still spending dollars on advertising during economic downturns, you appear stable.
Develop a New Value-Added Marketing Strategy
The cost of advertising goes down during a recession creating a type of buyer’s market. Since it is a bit cheaper to put messages out there to your customers, make sure the messages add value to your brand. For example, during the COVID-19 pandemic, it is important to make sure you let your customers know that you’re more concerned with their health and safety than you are with making a buck.
Your Customers Will NOT be Offended
Many businesses are worried that they’re going to upset their customers by continuing to advertise. Let’s face it, times are tough. Some people are depending on economic stimulus packages from the government to pay basic bills. Consumer spending is down. However, only 8% of consumers expect brands to cut advertising.
What Will Happen if You Stop Advertising
You can expect history to repeat itself. What does that mean? Let’s look back to the Great Depression (1920s). Post cereal decreased advertising but Kellogg’s doubled their advertising budget. Kellogg’s profits increased by 30% and became the cereal category leader. There are numerous examples like this. One major brand pulls back while another surges forward. It was really prevalent during the early 1970s energy crisis, especially with automobile sales. This is when Toyota overtook Volkswagen for imports.
Don’t Let Your Nerves Get the Best of You
I understand the temptation of pulling back during a recession or pandemic. I’ve faced the same decisions myself. I’ll happily guide you. Get in touch with me today for the help you need to propel your business through this crisis.