With an anticipated global recession looming – thanks to inflation and rising federal interest rates – it’s only natural for business owners to think about where they can cut costs in order to maximize profits. Unfortunately, when it comes to budget cuts, marketing is often one of the first things to go. However, although marketing may not feel essential at a time when the finances are tight or unpredictable, budgeting for marketing during uncertain economic times is essential to keeping your business fruitful before, during, and after a recession.
Don’t Stop Your Marketing
History tells us that cutting out marketing during times of economic stress does more harm than good. For instance, The Great Recession of 2008 was a time of much anxiety and even panic for businesses, small and large. However, B2B brands that maintained or even increased their marketing budgets during that difficult time, fared better during the recession itself, and had a much easier time rebounding after it was over. These brands were able to maintain their market position, brand awareness, and even increased their client base, by taking advantage of available market opportunities left open by companies who chose to pause their marketing initiatives.
Stay On Your Clients’ Radar
By continuing with a marketing plan, businesses can remain on their clients’ radar, increasing brand awareness. With this comes more web or foot traffic (depending on your type of business), more referrals, more opportunities to build client relationships, and in the long run, a more financially stable company. By slashing marketing costs, you end up with the opposite results, which allows other competitors to take advantage of your absence in the market and gain market share in your place. This may lead to a decrease in both your market position and sales, even after the economy is on the rebound.
Adjust Your Marketing/Digital Strategy
Businesses should absolutely continue with marketing during a recession, but it may be smart to adjust your strategy. Take a closer look at your clients and their buying habits. Do they purchase your products or services online or in-store? What times of the year do they need your services most? Do you understand how the current economic climate affects your clients’ needs and priorities? Where o your clients/customers “hang out” on social media? Gaining perspective on these and other aspects of your client base will help you to adjust your strategy and budget appropriately for the best results. At the same time, take a look at which of your marketing strategies in the past have been the most successful and obtained the most activity. Use this information as the tools to tailor your marketing campaign for your target clients in order to utilize your budget as efficiently and effectively as possible.
Find the Right Agency to Partner With
If perfecting a cost-effective marketing strategy during a difficult economic time sounds overwhelming, then an experienced marketing agency could be of great value to you and your company. A skilled marketing team, like the one at MarketShare Communications, that has implemented successful tactics across multiple industries, will have the breadth of information to ensure business health and growth, even during unpredictable economic times. An agency will also help to ensure you have your website, social media channels, emails, and other online digital assets up to date in order to most effectively reach your target audience and be as attractive to prospects and clients as possible. A strong out-sourced marketing team will also help you develop ways to stay connected to your clients and build lasting relationships to ensure long term business.
Remember that Marketing for your business should not be a liability on your P & L statement – it should be an investment in the growth of your company!
As an incentive to help you start off your new year in the right direction, we are offering a Free Marketing Assessment and 30-minute conversation about how to best navigate your company through 2023. If you would like to take advantage of this, email us at email@example.com or call us at 973-299-8001. We look forward to hearing from you soon!
Ilene Greene & Ted Polmar