When the stability of the economy is in question, the knee-jerk reaction for many businesses is to pull back on their marketing efforts until things turnaround. In reality, there isn’t a better time to market than during a recession.
Recessions Create Opportunities
An economic downturn can be an opportunity rather than a death sentence. It’s likely that your competition will be less visible, since many companies fail to recognise the opportunity and instead reduce their marketing budget. As a result, they leave potential market share on the table. Consequently, your marketing efforts will stand out.Marketing is an Investment not an Expense
Sam Walton, founder of Wal-Mart was asked what he was going to do about the recession, he answered: "We don´t plan to participate." What he really meant was that he saw the slowdown as an opportunity to intensify his marketing efforts. Like most successful entrepreneurs, Walton believed when times are good, you should market your products and services, but when times are bad, you must market them.A McGraw Hill Research study of recessions, which analysed 600 companies over five-years, concluded that "firms, which had maintained or increased advertising during the…recession, could boast an average sales growth of 275 percent over the preceding five years. Those who cut advertising realised a paltry increase of only 19 percent."
This is not always easy to do as you watch your company´s profits decline, but this advice and the research study´s conclusions are worth considering. This is no time to bury your head in the sand and reduce your marketing; you need to take stock of what really works.
Use Direct Mail
According to The Cyclical Analysis of the Direct Mail Market, a study conducted by the Winterberry Group, direct mail works. The report concludes that the use of direct mail has increased each year over the past 50 years, underlining direct mails’ position as "the most dynamic part of the overall marketing communications mix." The study also states that direct mail outperforms other types of marketing during periods of weak or moderate economic growth.Reasons to Market in a Recession:
- Historically, companies maintaining or increasing their direct mail marketing efforts through economic downturns increase sales and market share during and after the slow period.
- Businesses that regard direct mail marketing costs as investments rather than expenses enjoy higher long-term dividends.
- Aggressive marketing in a downturn will allow you to seize market share from timid competitors.
- Solidify relationships with existing customers so they remember you when times get better.
- Continuing to market in a recession projects an image of confidence, strength and stability.
- If your company´s market presence diminishes, so can your customers and it costs much more to regain the lost ground than the amount saved by slashing the marketing budget.
- When your competitors cut back, your marketing efforts appear even more outstanding.
Hyperflyer can help
At Hyperflyer, we are experts at producing professional, eye-catching marketing material that gets your message across fast. We have developed a specific range of affordable products designed to help businesses market themselves during these challenging times. We have worked for large corporations such as Shell, BT and Motorola right through to small one-person businesses.Marketing ideas you could use
- Email special-offer flyers, newsletters, surveys
- Websites that sell your products or services
- Printed brochures, flyers and newsletters
- Sales presentations
- Branding and logo design
Get in Touch
We are waiting to turn your marketing ideas into professional, eye-catching material that could help you boost your sales fast. We are a friendly bunch and you will find us very easy to work with.Why not get in touch - we would love to hear from you!
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