Marketing amid economic instability can be intimidating for businesses across the board. As budgets tighten, it's instinctive to trim costs, including marketing. However, there are numerous benefits to marketing during economic instability, enabling businesses to ride the wave and emerge stronger on the other side.
Firstly, marketing during turbulent times helps businesses maintain their visibility and relevance in the marketplace. Amid a recession or downturn, many businesses reduce marketing expenses, resulting in diminished brand awareness and customer engagement. By consistently marketing and promoting your products or services, you preserve your visibility and ensure that your target audience remains cognizant of your offerings.
In fact, research indicates that businesses continuing to market during a recession are likelier to emerge stronger once the economy rebounds. A study conducted by Bain & Company during the 2020-2021 COVID-19 pandemic discovered that companies that sustained or increased their marketing spend during the crisis saw sales grow by an average of 5.2% over the subsequent three years, as opposed to businesses that reduced marketing expenses and experienced a sales decline averaging 0.5%.
Secondly, marketing grants businesses a competitive edge when industry voices are comparatively scarce. In challenging economic climates, numerous businesses minimise marketing expenses or even fold. This creates a market gap, allowing businesses that persist in marketing to capture market share and position themselves as industry leaders.
When industries face downturns, those working within seek guidance and advice to safeguard themselves and their businesses. By continuing to market and promote your products or services, you present yourself as a dependable, trustworthy source customers can rely on during uncertain periods. This helps build customer loyalty and establish a strong reputation that benefits you in the long run.
Lastly, marketing amid economic uncertainty enables businesses to adapt to evolving consumer needs and behaviours. During economic slumps, consumer priorities and behaviours often shift as individuals become more prudent with their spending and reprioritise products and services.
By persistently marketing and engaging your target audience, you can glean valuable insights into these shifting priorities and adjust your offerings and messaging accordingly. This helps you stay ahead of the curve and set your business up for long-term success, even in a rapidly evolving economic landscape.
Importantly, consumers don't always seek cheaper alternatives; they often search for products that enhance business efficiency or enable growth by introducing new products or services. While traditional digital placements are effective for fast sales of products with new features or special prices, podcast, webcast, or content advertising is optimal for gaining market share for your overall brand when there are relatively few voices. By employing these channels to reach your customers and provide pertinent, valuable content, you can foster trust, showcase your expertise, and position your business as a reliable partner they can depend on, even in difficult times. For additional information on these channels, refer to the links above or contact your account manager.
In conclusion, marketing amid economic uncertainty can be a formidable challenge for businesses of all sizes. However, by maintaining your marketing endeavours during difficult times, you can preserve your visibility and relevance in the marketplace, secure a competitive advantage over businesses that reduce their share-of-voice, and adapt to changing consumer needs and behaviours. By doing so, you can emerge from the economic downturn stronger and better positioned now and in the future.