Why marketing is essential in a recession

The marketing budget is often one of the first to be cut when an economic downturn hits. Anna Stella, CEO of BBSA Marketing, explains why such thinking is flawed

History has time and time again shown that recessions can offer incredible opportunities for business growth for brands that sustain their marketing activities and budgets. Here are seven of the top reasons why you need to keep your marketing budget if you want to grow beyond the economic downturn:

Marketing history repeating itself

Successful marketing is a process that requires consistency over time, and the best time to work on recession is before recession hits. Time and time again, history has proven that companies willing to invest in marketing enjoy accelerated growth. As the saying goes: “When times are good, you should advertise; when times are bad, you must advertise.”

In the recessions of 1981-82 and 1974-75, companies that continued to invest in advertising saw more growth than their competitors that shrunk or eliminated their budgets – and in 1981-82, that growth was a staggering 256%. In the 2008 recession, many businesses debated whether to trust the economy, and advertising expenditure dropped by 13%. Yet statistics showed 3.5 times more brand visibility for companies and organisations that maintained their marketing output.

Taking care of clients is taking care of your business

One of your top strengths in a recession is a loyal client core; focusing your efforts on servicing existing clients offers five to 25 times more yield, with far less effort and expense than it takes to acquire new clients.

Regular communication strengthens your connection with clients as they encounter your genuine interest and care. And there are benefits to continuing with marketing to your existing clients during a financial crisis.

Consider what you are offering clients

When a recession hits, clients look at purchases more carefully, weighing up perceived value for money, often reviewing service bundle offerings and price models.

Refresh your marketing strategy and plan

The after-effects of recession can influence client purchasing patterns long after the financial crisis has been resolved. Companies often make the assumption that it will be ‘business as usual’, with clients resuming their purchasing habits or behaving the same way they did during previous economic downturns.

Get more out of your marketing budget

Recessions tend to require more from a business to succeed. Competitors that face financial hardships might lose their marketing focus, postpone projects, partially withdraw some activities, or be hindered in launching new services. This means your business will be left at an advantage, receiving extra visibility and, essentially, getting more done with less budget.

This article was written by Anna Stella CEO of BBSA Marketing