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How to keep marketing in uncertain times

August 4, 2023

Joe Papadatos

In tough and uncertain times, it’s very tempting to trim marketing budgets but that approach is very shortsighted and needs to be examined carefully. Instead, consider seeing marketing as an important part of long-term growth.

During difficult times, it is the innovators that rise to the top. During the height of the COVID-19 pandemic, there were many productive marketing advances and many companies that grew exponentially as a result of embracing them. One big change occurred in how products were brought to the market, leading to huge growth in home deliveries for example, for many companies. Overnight, many innovative companies had to rethink their whole marketing strategy. Those that panicked didn’t survive. Those that transformed, thrived.

Instead of making blanket cuts across the board, eliminate inefficient spend and reinvest in high-growth areas. This gives your company the chance to weather that rough patch and create opportunities to rebound strongly.

In our experience, businesses that continue their marketing programs during downturns come out faster and stronger. If you took the opposite approach and cut your marketing spend, your competitors gain share of voice and ultimately sales.

Here are a few things we’ve learnt during our 20 years as a thriving marketing agency:

Maintain continuity

During a downturn it’s very tempting to compromise on many aspects of your business. Continuity is essential during good and bad times.

Your brand’s core values should be embraced during these times. This flies in the face of commercial pressures for compromise on aspects like quality, transparency, service or whatever it is that sets you apart.

In our experience, brands that remain present during economic downturns remain relevant to customers, keeping existing ones happy and attracting new ones. Some of your customers may have less disposable income or have prioritised their spend in different places but keeping in front of them is still important.

By being the visible and consistent company, when they do have money to spend, you’ll be high on their shortlist because you they may think your product or service is the only option that seems to be available. Your competitors, who’ve cut budgets are much less visible and to some may be invisible.

Stand out from the crowd

As well as maintaining continuity you’ll be able to stand out from the crowd if you maintain or increase your marketing spend while your competitors are cutting their budgets.

Often during economic downturns, it’s the norm rather than the exception to cut marketing budgets, but by doing so they are reducing their share of voice to potential customers. By continuing with your marketing program, you will fill the void left in their wake.

It is also likely that media companies are also experiencing a downturn in sales, so you can buy at better prices, particularly in large-scale digital marketplaces.

So, you get the double benefit of paying less to reach more customers and having less competitors to distinguish your business’ products or service from. A win, win.

Focus on the marketing activities that work best

A turbulent economic environment is a great time to bring discipline to your marketing program. It doesn’t necessarily mean cost cutting, it could involve redeploying resources to your most relevant and successful marketing activities that have proven their worth.

By employing accurate measurement tools you’ll be able to identify the areas you need to put your focus on. Now is not the time to experiment, but the time to stick with the activities providing the best results.

Maintain and nurture relationships

Most businesses are successful because they maintain and nurture relationships in good and bad times. Relationships with customers, suppliers, distributors, and staff are all essential to run a great business. You know the adage that retaining existing customers will always be easier than acquiring new ones.

Many companies make the mistake of sacrificing relationships when faced with economic hardship. And it’s true that there will be difficult choices to make but making knee-jerk decisions will not help you survive the bad times.

This period could be an opportunity to create advocates for your brand and business, while your competitors are cutting ties with theirs. For example, going above and beyond for customers in tough times will not be forgotten, and it’s more likely that they’ll recommend your product or service to others.