During times of crisis, businesses across industries typically have the same immediate reaction: cut as much cost as possible - and that typically means the marketing budget goes first. While cutting these costs may seem like the logical thing to do in the short-term, it can actually leave your business and brand off worse when things resume to normal.
Maintaining Customer Loyalty
Chopping your marketing budget in anticipation (or during) a crisis or recession can lead to long-term effects that may do more harm than good. Keeping consistent marketing activity enables you to project an image of stability that maintains consumer confidence and loyalty - leading to better business when things open back up.
Loyal customers who know your services and brands well will be the driving force behind your continued success when business gets back to usual, and maintaining your marketing budget is essential in order for that to happen.
History Repeats Itself
History shows us that businesses who kick their marketing into high gear during times of recessions consistently come out on top. One of the most popular examples of a company thriving during uncertain times is the competition for market share between Kellogg and Post during the Great Depression. Post cut its advertising budget drastically, while Kellogg doubled its marketing efforts. Within a few years, Kellogg’s profits had risen by thirty percent and became the dominant player within its industry.
2008 through 2009 saw America in the depths of the Great Recession. During this time, Amazon poured all of its resources into innovating and marketing new, low-cost products, resulting in a 28 percent increase in sales.
While these are complicated times, consumers are still looking for the services and products they can benefit from. History shows that the businesses who immediately cut their marketing may experience more harm than good.
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