15 Apr Business in Times of Recession – Approaching Marketing in a New Ecnomony
A recession is a complicated and confusing time for most marketers. During a recession or a sudden economic downturn, consumers suddenly alter their spending habits. In almost every industry, this means that demand for the product goes down, and ROIs follow shortly after. It can seem ludicrous to spend additional money on a marketing strategy during a recession – if no one is spending money, why bother advertising?
Contrary to what many believe, marketing is a vital investment during global recessions. Studies show that a careful marketing plan during an economic downturn can not only keep your company afloat but can actually make it even more successful.
The Importance of Marketing During a Recession – Brand Engagement
Perhaps the most vital reason to continue with a marketing strategy is to remain present in your customers’ minds. Most modern marketing schemes focus on brand engagement, or, the process of establishing strong emotional bonds with customers.
These emotional ties are hard to break. If your consumers feel tied to your brand, they will be far more likely to continue purchasing your product. To retain your base of returning customers during a recession, continue marketing your product through social media platforms and email lists.
Optimize your Marketing Strategy for Recession Conditions
In order to make sure your marketing strategy is appropriate for the economic climate, you should take some time to understand recession psychology. During times of economic hardship, consumers have less money to spend, forcing demand for your product to go down. In this particular economy of 2020, the ongoing Coronavirus pandemic has caused uncertainty in terms of jobs and incomes, so people will be even more likely to avoid spending.
Because of demand changes during a recession, your marketing strategy will need to change too. Start by considering your product in the new economy. Is it a necessity, an expendable, or does it fall somewhere in between? Focus on the aspects of your product that could be deemed essential. Your job is to convince consumers that they still need your product. For instance, if you sell yoga mats, you might wish to focus on yoga as a necessity for mental wellbeing during a recession.
Plan for the Future
Even if you are worried that your marketing efforts are not resulting in sales during the recession, maintaining a rigorous marketing campaign will keep your brand relevant and visible. Recessions always end. When they do, the companies that have remained present are the ones that come out on top.