When budgets are tight, marketing is likely to be one of the first things to take a hit. This is particularly true for smaller businesses’ and organisations as the advertising or marketing budget is often seen as secondary to what the business primarily offers. Whilst historic advertising may not be immediately forgotten and online presence won’t disappear overnight, brand awareness without marketing will only last so long.
They say you have to spend money to make money and whilst this is a brave step for small business’, both thriving and struggling, investing in ongoing marketing and advertising will ultimately benefit a business.
In previous years it has been difficult to measure ROI from advertising but with the rise in digital and social media marketing, engagement can be tracked and measured through regular reporting. As it’s also a live platform, ads can be tweaked and altered to maximise performance unlike printed collateral. Even without digital support, considered advertising can help a business during financial hardship. At this point a new strategy needs to be considered and implemented to maximise a business’ bread and butter offering.
Effective advertising can not only raise a brand’s awareness to a potential client but importantly, retain current clients.
There are numerous examples of companies being brave in the face of financial turmoil and altering a marketing strategy to make the most of the situation.
In the 1930s, The Great Depression hit the US causing drastic declines in output and severe unemployment. Budgets were being cut everywhere but General Motors bucked the trend and capitalised on it by using billboards and radio advertising to promote its budget brand, Chevrolet.
General Motors delivered a profit every single year of the Great Depression.
Even during the 2008 recession, companies that continued to advertise generally saw an uptake in sales versus companies that cut their budgets. Those that kept their names in the minds of their consumers particularly found that when those customers did have money to spend, they were turning straight to that brand.
So before cutting the marketing and advertising budget, consider a change of strategy to reap the rewards both in terms of increased sales and customer retention.
We help clarify what a business should be saying to their audience, immersing ourselves in a client’s business so we understand the problem and producing marketing strategies to deliver results even in the toughest times.