What can you do as a business owner or manager to grow your company during a crisis, and in the aftermath of such a difficult period? Well, the answer is simple: keep focusing on marketing and advertising. Here’s why.
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In times of crisis, most companies tend to drastically cut down on marketing and advertising expenses. For instance, during the economic recession of 2008, the amount of money spent on (online) advertising dropped 13% on average, according to Forbes. Exactly the same is happening now, creating (growth) opportunities for companies that haven’t reduced their marketing budget.
First of all: when other companies stop advertising, there is more room for the success of your ads. In addition, advertising is more affordable because the demand is lower, giving you the opportunity to cheaply strengthen your market position and/or introduce a new product, service or feature.
Henry Ford once said, “A man who stops advertising to save money is like a man who stops a clock to save time.”
In other words: advertising is an integral part of a successful business.
Secondly, when competitors cut down on marketing expenses, they become less visible or even invisible in the market, resulting in a snowball of adverse effects. Starting with the loss of brand awareness, followed by losing that top-of-mind position in the (potential) customer’s head and ending with a lack of new orders. So, by staying focused on marketing and advertising and applying the right brand and marketing strategy, you can land those orders.
Lastly, with marketing, you can also demonstrate your company’s stability and reliability and prove that you’re that brand (potential) customers can build on, even during a crisis.
Less burgers, more pizzas and tacos
During the economic recession of 1990/1991, Pizza Hut and Taco Bell benefited from McDonald’s decision to advertise less. Pizza Hut saw sales grow 61%, Taco Bell grew 40% and McDonald’s lost 27%.
Bringing marketing and advertising to a halt during, and in the aftermath of a crisis, is something you shouldn’t consider as a company – only if there is no other option.