Even though recessions happen every so often, they’re not all the same. But, there are patterns in consumer behavior and the strategies that businesses use to get through them.
To do product marketing in a recession, companies need to understand more than just the condition of the economy. They need to understand that consumer behavior changes. The majority of consumers don’t just reduce their spending, they become more strict with what they spend on and stick to their priorities better. The fact of the matter is, there’s just not as much money to spread into the economy.
Keep Up With Product Marketing
On the business side of things, what usually happens is cost cutting, price reductions, and the postponement of investments or expansions. One of the first things to go is marketing expenditures. That is actually a mistake though. Not to say that you shouldn’t try to be more efficient when it comes to cost, but you could be losing more by doing this. Instead of slashing your marketing budget, it would better suit you to be more precise with it. Analyze and discover what your customers actually need and tweak your tactics and product offerings to fulfill those needs. This will give you a better chance of not just surviving, but thriving in and after a recession.
There’s a Good In This Equation?
Yes, there’s a good in there somewhere, and we’re going to share it with you. You might be saying, “There’s not enough in the budget to continue spending on marketing!”. We’re not saying to spend more or at the same amount, the goal is to be precise and picky even.
Don’t Scrap All Your Advertising
When it comes to advertising, it’s a little tricky. The research contradicts itself. You need to look at it from another perspective. If you’re expecting lower sales during a recession, then yes that would justify that you should reduce your advertising budget. But, that might not be how it plays out. If your competitors cut down on advertising, it will make it easier for you to maintain the same share of awareness while using less money! This is because the cost of advertising could drop as the demand for advertising drops. Spending less plus earning more equals higher ROI. The important thing is to stay aware and keep doing your research.
Don’t Be Scared to Adjust Your Prices
What about price? Well, obviously if your customers have less money to spend you’re going to want to lower the price for them. That’s if you can do it and still sustain yourself off the lower profit margin. Not much to be said here. If you’re offering quality products and necessary services for a price that is friendly to the consumer, you should be able to pull yourself through.
Innovation Can Still Happen
In terms of innovation, it’s difficult to say. If you’re coming out with the latest technology that’s just not going to be priced for the mass market, you might not see that much interest. That’s not to say that you shouldn’t innovate during a recession. Launch new products during a recession and research suggests that they will show higher long-term survival rates. People who didn’t, or weren’t able to, get their hands on your product might try to as soon as they emerge. But, that’s usually the case in moderate recessions. In a severe recession, like the one we’re in right now, survival prospects aren’t looking too good. It’s good to be proactive though and get ready. Get ready for what you say? For after! Things will get better. And, if you lay the groundwork now, you’ll be ready to step up when the time comes.
The Crux of the Matter
An economic downturn can be both a threat and an opportunity at the same time. If you have enough resources to increase your product marketing, you should. If you don’t, don’t stop completely! Be flexible and invest smartly and precisely to get a head start or gain an advantage over your competition. In times of crisis, it’s the ones who keep fighting that have the best chance of coming out on top. If you’re not sure how you’re going to get through this or how you should go about fine-tuning your marketing in this recession, please don’t hesitate to contact us. Our team of Enablers is always ready to serve. We’re all in this together.