By Sarah Cook, Managing Director of Coconut Creatives Marketing in a recession - The Golden Rules.
Firstly, don’t panic about marketing. It’s not an exact science but it is an art.
Here are some tips of what you should be doing and more importantly what you shouldn’t be to help you survive and grow. A tough economic climate might seem an unlikely environment for growth but those that pick up the challenge will see greater returns for far less investment than at any other economic phase.
Don’t just take my word for it.
"It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times."
John Quelch, Professor, Harvard Business School
What to do
√ Understand your audience. What are their motivations; what journey do they take to research buying a franchise? What do they need to know, can relate to and what will give them confidence to choose your franchise over alternatives? Ensure your marketing communications are effective and targeted with these factors in mind.
√Brands increasing or maintaining their spend come out of a downturn ahead in share terms and maintain those advantages when the economy picks up. Keep confident in your offering and your marketing strategy.
√ Maintain marketing spend. A difficult economy is not the time to cut marketing and advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. It is cheaper and easier to grow market share in an economic downturn than when the entire market is in growth.
√ Much of marketing is an integrated approach and so stopping a campaign or dropping one element of it save a few pounds today, may have a negative effect on the performance of the collaborative campaign as a whole and cost you far more in the long term. Don’t just focus on the bottom line.
√ Do something. Make time to review your marketing. When times are good, less analysis of any decision occurs. Accountability is essential. Make time to understand your strategy, involve professional that can guide and advise you. Its money well spent and your return on investment will be worth far more than the expenditure.
What not to do
X Don’t cut advertising budgets, there is no evidence that cutting back during a downturn benefits even short term profitability.
X Brands increasing or maintaining their spend come out of a downturn ahead in share terms and maintain those advantages when the economy picks up.
X Don’t put a freeze on your franchise recruitment marketing plan or your brand ones either. It is cheaper and easier to grow market share in an economic downturn than when the entire market is in growth.
X Don’t just focus on the bottom line. Be financially realistic yes, but ensure whatever you do spend is measurable and that you have professional communications using proven marketing channels. This increases your quality and level of response and reduces risk.
X Don’t sit tight and wait for it all to blow over, your competitors won’t and they will reap the benefit of their courage and insight by stealing your customers as they didn’t even know you were there. Recovery will happen, but it will be the companies stronger, smarter and more robust in their business objectives that will growth at a faster pace than those who retracted for survival in these challenging times.
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