Over the past few days, I have read a few different people giving the same piece of extremely damaging advice!
Stop your marketing!
Believe it or not, there are people out there right now, suggesting that because there is an economic downturn, credit crunch or recession (take your pick), businesses should avoid investing in marketing! This could not be further from the truth. In fact, during tough economic times, it’s far MORE important to market your services effectively than during a stronger economy.
Why?
Because when times are good, even poorly marketed companies will make some sales – just by being there at the right time or getting their message in front of enough people.
However, when money is tight, people and businesses have to REALLY THINK before they buy anything. They also become far more attracted to products and services that offer great value. So, they spend money on the things that sound the most valuable and compelling - and that’s the goods and services that are best marketed!
I shall be writing some posts over the coming days, to show you how you and your business can thrive during a weak economy. Make sure you don’t miss a thing, by subscribing to my RSS feed using the orange button on the top left hand side of this page!
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Great blog Jim! Your material is helpful and insightful and the pages are clean. I can only suggest that a greater use of diagrams and pictures would add further depth & interest to your already wonderful material.
Fellow Twitterer, Marigo
Jim, Marketing is what counts:-) Only question is, “Which kind of marketing?”.
In tough times the easy print marketing in every corner is probably a waste of time and energy. Therefore LEAN MARKETING is what is really coming. Get connected with your future (now potential) customer in the most authentic way giving him the choice to take your offer.
Best regards from Leipzig
Ralf
PS.: Slowly the idea behind Twitter is getting into my mind;-)
Hello Marigo,
Thanks for your kind words and suggestions. I read every comment that comes in and both use and share all the great ideas my readers share.
Hello Ralf,
Thanks for your comment.
Learn marketing is definitely great advice. The most leveraged marketing is the best – especially when the economy is weak.
We started a ’service’ company in the 1991 recession “Australia had to have”. Economic Downturn? BRING IT ON!
Best time to grow or start a business! Easiest time to market!
Hello Linda,
You make a refreshing and very interesting point.
Many people find it easiest to launch a new business during an economic downturn, because it’s when most poorly-advised businesses STOP their marketing.
Thanks for your comment Linda!
It’s been proven – Stop marketing = GOB (Going out of Business) Sale.
Marketing can be done inexpensively even for free. The problem is that small businesses don’t know where to start and are still stuck in the expensive-low ROI mentality of traditional media.
Thanks for your comment Pierre,
That mind set is what me and people like me are trying to change. You are right – most small business marketing can be done for free or low-cost.
In the US, we are expecting a meager 2% sales increase for the Christmas season. That is still an increase! So why panic?
Increase your marketing and get more than your share of that increase.
A good example of that would be Kellogg besting C.W. Post during that time. Consumers didn’t stop spending during the Depression; most just looked for better deals, and the companies providing those better deals came out stronger after the Depression ended. When spending picked up, consumer loyalty to those companies remained.
Here is an article that speaks to advertising during the Great depression.
“Generally speaking, those companies that not only survived but also thrived during the Great Depression were those that continued to act as though there were nothing wrong and that the public had money to spend. In other words, they advertised. These are industries that didn’t wait for public demand for their products to rise. They created that demand even during the most difficult of times.”
More here: http://www.imediaconnection.com/content/20821.asp
Hello Pierre,
The need for great marketing has seldom been stronger. You make a good point.
Thanks for the comment.
Hello JP,
Thank you for such a useful contribution to my blog and this subject.
Great blog, and love the post – it’s hard to imagine people still believe that stopping marketing to save money will help the company. There are so many proof points about how investing in marketing in downtimes ensures success. My own business included. Great stuff Jim.
Hello Tracy,
Thanks for the comment. Yes, I find it hard to believe myself, but when people are using ineffective marketing and not getting result, it’s tempting to stop – rather than invest in more successful marketing.
As you know, that kind of thinking has ended many a small business.
As usual Jim you make a great point.
Love the new design for the blog, very clear and uncluttered.
You’re absolutely 100% correct.
Who are these people you are referring to? Are they CEOs? Business consultants? TV and radio pundits? I wonder what business professional would go on record with such a bonehead statement as “bad times are when you need to cut back on marketing”.
If a company sees so little value in their marketing firm or department’s activities that they would opt to make their first budget cuts there, they should have fired them and hired a better one long before now. What were they doing until the economy hit this road bump? Running through the motions? Where is the accountability? This is such a sad mentality.
The issue isn’t so much about tightening the proverbial belt as it is connecting the dots between marketing activity and results (ROI). Plain and simple. Marketing is an essential business process. It is not, as these narrow-minded demagogues would have their audience believe, corporate narcissism with an inflated price tag.
Any business executive who doesn’t understand the value of marketing – especially in times of crisis – probably needs to be relieved of their duties. They, not the economy, are the folks driving their business into the ditch.
Great post.
Thanks for the feedback Oliver!
You are right – marketing is an essential business process. As they say, “In business, NOTHING happens unless there’s sales!”