Why You Need To Keep Marketing During a Downturn
Here’s why you shouldn’t stop your marketing activities when the economy sours
Case study after case study shows that when economic times are bad (recession, downturn in the market, uncertainty like now), companies that keep marketing come out stronger in the long run once things return to normal. Keeping with our marketing strategy not only helps lessen the amount of the downturn on a business, but also reduce the length of the downturn and help accelerate the comeback.
The explanation is this. While customers aren’t buying, they are probably looking. And you need to stay in front of them during this time. And the more you do, the more they will remember you when the economy comes roaring back.
Look at it this way. Let’s say the market you are in is worth $10 million dollars, and you have a 10% share of the market, or $1 million. Now when the economy starts to slow, you keep that 10% share, but the market goes to $8 million. Your share is now $800,000. Through hard work and marketing, you increase that back to $1 million, which is now a 12.5% market share. Now, when the market returns to $10 million, you are at $1.25 million.
Bottom line, downturns are excellent opportunities for you to increase market share. And that’s what you should be shooting for, because during this time is when many of your competitors are probably cutting their marketing activities. This is why you should keep going.
Some things to keep in mind to keep your marketing strategy on track:
- Adjust your marketing budget, but don’t cut it
- Look at what your target audience’s recession behavior is
- Analyze and track everything
- Existing customers should be your focus
- Sales calls should now be marketing calls
Cylinder can help with this either on a project-by-project basis, by developing a marketing plan that you can execute, or we can become your marketing department. Call us, email us, or fill out our contact form for a consultation.