Misc

Why You Should Be Marketing in a Recession!

Whatever you choose to call it…..”the economic climate”, “the downturn”, “the recession”….many companies have to take some responsibility themselves if they have experienced a drop off in performance and a decline in sales.

Why?  Because, for eternity, the first thing companies look to cut back on at the first whiff of a tough trading period is marketing.  Personally, I have always struggled to understand the logic of this approach.  I can just see the Managing Director sat in the boardroom with his team…

“The future looks bleak team.  The media is forecasting that we are heading into the deepest recession we have ever experienced.

Rather than winning new clients and maximising the return from our existing client base we are going to tighten our belts and hang on to our cash! Hopefully this will then see us through this period of uncertainty”.

It is the equivalent of an animal, storing up food and crawling under a rock and hibernating for the Winter in the hope that:

1)      his food stored will last until Spring and;

2)      another animal hasn’t appeared on the scene in the meantime, leaving nothing but a barren environment meaning that he will starve to death when he reappears.

Stationery supplies are a cost.  First class travel is a cost.  Gas and Electric are a cost.  Marketing is an investment.  For every £1 of cash invested into the business it should be generating a solid return – usually somewhere between £4-15.  So if everything you are spending on marketing is, on average, generating you this sort of return why would you stop it when things suddenly get tougher?

However, this is not solely the reason why companies should continue to invest in marketing.  It may sound strange but recessionary periods are the best times to invest in marketing because opportunities for businesses actually increase during periods such as this.

The businesses who come out of the recession after actively marketing their business through the period are going to be so far ahead of their ‘cost-cutting’ competitors that it may take years of investment before their competitors are ever close to being on a level playing field again (if ever).

If you have never really marketed your company before as business seemed to just naturally come to you, then now is the time to start as you will be getting far greater value for your money.  Because so many people have ‘frozen’ their marketing activity you will find that two key elements mean you will get a much greater return on investment:

1)      There is less noise in the market place.  This means that your message has a far greater chance of reaching its target audience (if it has been carefully planned).

2)      Media channels will be a lot cheaper.  TV, radio, press, agencies etc will offer companies much better deals to drive demand.

One last point is that it is also interesting to note that with many companies marketing is an “all or nothing” mentality.

However there is obviously a very clear middle ground.

Certainly some businesses will have been overspending on ambitious and ill-conceived marketing activity and the recession has forced them to stop and take stock – which is a positive thing.

However there are many cost effective and clever ways of getting your messages to its target audience, in order to drive up the number of enquiries into your business, without spending thousands of pounds on advertising (including CPC).

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Ian Kirk

Founder at Opportunity Marketing

Ian is the founder of Opportunity Marketing marketing, with over 18 years of experience in successfully setting up marketing departments, creating marketing strategies and implementing these strategies across a wide number of SME companies in both the B2B and B2C sectors through a variety of channels.

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LEEDS CHILDREN’S CHARITY


RESULT: 21% UPLIFT IN FUNDRAISING INCOME AND A MUCH WIDER AWARENESS OF THE CHARITY HAS SAFEGUARDED ITS FUTURE.

 

Scenario

The Leeds Children’s Holiday Camp Association was one of the oldest charities is Leeds, but was struggling to generate funds with low awareness and potential funding grants reducing.

Solution

Opportunity Marketing created a marketing strategy for the charity which involved a complete rebrand and a wider income focus on corporate and individual supporters and donators.

“Opportunity Marketing is a highly creative and inventive marketing company that has produced ideas and a strategy to promote and raise the profile of the business in the most effective manner. We have always found them to be friendly and efficient, whilst giving absolute priority to the best interests of the business.”

Verlie McCann
Leeds Children’s Charity

PRESTIGE COURT

 

RESULT: 70% OCCUPANCY WITHIN 6 MONTHS AND 100% OCCUPANCY WITHIN 12 MONTHS.

 

Scenario

Prestige Court were a newly refurbished office provider on the outskirts of Leeds.  They had failed to fill a single office in 8 months of trading and the financial drain of the empty building on the landlord was reaching a critical stage.

Solution

Opportunity Marketing researched and analysed the marketplace and developed and implemented a marketing strategy to attract and convert a high number of clients to the offices.

“Opportunity Marketing helped us to identify our target market and clearly define our proposition.  I am pleased to say they delivered the results within the promised timescales.”

Pat Gilligan
Prestige Court

STAY SOURCED

 

RESULT: 45% SALES GROWTH OVER THE LAST 3 YEARS.

 

Scenario

Stay Sourced had been trading for three years within very difficult market conditions where many companies had been going out of business.  Stay Sourced were growing at a slow rate (6%) and were relying purely on referrals for new clients.  They needed to be proactive in order to achieve their ambitious growth plans.

Solution

Opportunity Marketing created a marketing plan, which clearly defined how Stay Sourced should be uniquely positioned in the marketplace and how to create a pipeline of new clients in addition to the organic growth it was achieving.

“We are delighted with the results Opportunity Marketing are achieving and, put simply, over the last 3 years, they have become our marketing department.”

Ben Rosenberg
Stay Sourced

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