Should your company advertise during a Recession?
Many small to mid-sized companies immediately cut their advertising budget during difficult economic times. Business owners often feel they can not afford to advertise while in a recession, and believe they will save money by eliminating that expense.
Advertising in a slow economy is extremely advantageous. Marketing campaigns produced during a recession have a stronger Return On Investment (ROI). Your ROI is a measurement of how profitable your investment is - so when you spend money to market your business, and gain increased profits and a higher market share in return over a period of time (taking into account initial outlays), you've earned a positive Return on your Investment. People receive less mail in a slow economy, so your direct mail advertising will produce a higher rate of return. Less clutter in the mailbox means your message will be noticed even more. When times are "good", every company is faced with more competition for their customers' attention. A recession can actually provide your business an "opportunity" - advertising without competition.
McGraw-Hill Research did a study that provides a perfect example of how advertising in a bad economy can increase your ROI. They analyzed 600 companies between 1980 and 1985 to investigate their advertising habits while in the recession of 1981 to 1982. The study showed that the companies who continued to advertise increased sales by a remarkable 256%!
The best way to market your business is to keep your company name and brand in the public eye. Even during a slow economy, people need to purchase goods and services. When people remember the name of your business, and what you provide, they will turn to you when they have a need.
A tremendous benefit of marketing during a recession is that other companies have stopped advertising. This gives you a distinct advantage - your business will continue to get exposure, but your competitors will not. By continuing to advertise, you will not only retain your current customers, but also win new ones. You will increase your market share, and your profit margin will grow. Conversely, if your company stops advertising, but your competitors do not, they are able to acquire your customers.
When you begin your advertising campaign, remember that repetition is the best way to provide name recognition. Use an aggressive advertising campaign to make sure your company name is seen by consumers on a regular basis. Once people are familiar with who you are, they are prone to work with you.
While it pays to advertise, even during a recession, it is always wise to maintain a budget. One of the fastest, most reliable and economic ways to advertise your business is Direct Marketing. In a direct marketing campaign, advertising materials are sent right to the homes of potential customers. This ensures that people will actually see your message. An individual who receives a postcard in the mail, or finds an advertisement hung on their door, is going to see it. The more often people receive your promotional materials at home, the better they will get to know the name of your company and the services you provide.
Work with a marketing company to have your direct mail piece professionally produced and delivered to your customer segment. A company like MARKOTS will guide you through the entire process: creating, printing and distributing an advertisement that will grab the attention of the reader. It is also a good idea to include a Call to Action for the consumer - a coupon or limited time offer that will cause the reader to utilize your services right away.
Bad economic times come and go. The trick is to stay afloat when the economy is in a recession.Direct Mail Marketing is one of the most inexpensive, accountable and effectual ways to promote your company and earn new business. It will help you not only survive, but actually thrive when times get tough.