RESOURCES - The FOCUS Marketing Intelligence Report

Want to Know More About Business Marketing Intelligence? Starting Here Will Help. The FOCUS Report is a our very own e-mail newsletter - a.k.a. 'e-zine' - is dedicated to keeping our clients and subscribers up-to-date with thoughtful, relevant news articles and opinion on how to build your online business. Enjoy!

Marketing 101 - Marketing During Tough Times

 [  ...about social bookmarks]

By Roy McClean, Principal
The Custom Fit Communications Group

"When the going gets tough, the tough increase their advertising." That’s the recommendation of Alex Panlilio, brand director for Coca-Cola. Many businesses chop the marketing and advertising budgets when times are tough. If you are ready to reduce your advertising, think again.

Bringing your brand closer to the public through advertising, particularly in times of crisis, helps to protect your business from the economic downturn.
"The brand is a very powerful symbol, the insurance policy against any downturn," he said. "Its image is its biggest asset. So rather than withdrawing support during an adverse situation, brand advertising should simply be managed differently."

For example, during the ‘War on Iraq’ people have been seeking out safety - an emphasis on the familiar, friends, family and stability. Advertisers such as General Motors increasingly air television ads promoting the reliability and safety of their trucks. Tourism Whistler is placing an emphasis on travel packages that promote vacations as a refuge for families in the ‘safe’ mountains. The recreation vehicle industry promotes safe travel and the opportunity for families to share quality time. These enterprises are taking the opportunity to build their brands built upon consumers’ comfort levels.

Studies show that companies that develop their brands with the use of advertising have stronger sales during recovering economies.
A study by the American Business Press on the relationship between advertising and sales in 143 countries during the 1974-75 economic downturn in the United States found that companies that did not reduce advertising expense in either year had the highest growth in sales and net income during the following two years.

Companies that do not cut advertising budgets in times of economic downturn post greater increases in sales and net income than companies that cut back. Why else does it pay to advertise when the company is down? "To capture share of mind and share of market," Panlilio added.

The old business maxim says: "when times are good go for profit margin, and when times are bad go for market share." A brand is a promise statement. Consumers tend to look for the familiar during tough times. When your customers know what your brand represents, you reap the benefits, particularly during tough times, which provides your business with the opportunity to increase market share.

The moral of this story? There are significant opportunities during tough times to build your brand by resisting the temptation to decrease your advertising. That’s why we also say: "when the going gets tough, the smart get advertising".

Print This Page

We'll send you a FREE Estimate for Your Next Project. Fill out a Projects Estimate form and we will contact you within 48 hours. Roy McClean, FOCUS Business Intelligence; Vancouver & Whistler.