Three reasons why business owners should invest in marketing during a recession

Using marketing to create opportunity 

While the instinct may be to reduce the marketing budget during a recession, it’s important to consider long-term implications. Positioning your business for success is key. 

In a challenging economic climate the right marketing assists business owners to invest in their companies success by strategically positioning their business for opportunities and future growth, and maintaining strong brand awareness and customer engagement in a competitive market.

In good times, people want to advertise; in bad times, they have to.

– Bruce Barton - Business Executive and US Congressman (BDO Advertising )

Ultimately, businesses that retain their brand awareness and consistently show up for their customers, even in difficult times, have the opportunity to:

• Build lasting relationships and emerge stronger when recession times are over
• Engage with customers and identify particular needs or gaps in the market to pivot, create new products and sales
• Outlast the competition.  

Three reasons why Marketing matters during a recession

1: To position your business – plan for opportunities and the upturn

Take a moment to look at the big picture. Where would you like your business to be when the tide turns and the recession is over? As history repeatedly shows, down turns finish –  there is always light at the end of the tunnel. And, at the very least business owners would not want to be worse off than their current position. Decisions made in an economic downturn will determine where businesses are placed during, and importantly when it is over. Business planning that incorporates consistent and targeted marketing will help to equip you for when the tide turns – and ready to ride the wave back up again!

Continued marketing will place your business in a good position during the growth period after recession. Ditching your marketing during a downturn, according to Nielsen Marketing, can result in a loss in revenue that can take years to recover. 

2: It’s a key investment in your business

Thinking of marketing as an investment, rather than an expense with no return, is a useful mindset. Making an investment gives you an opportunity to reap a return on that investment, whereas no investment will most certainly return nothing. 

During a tougher economic period you may need to assess whether your marketing investment is to maintain or increase your current momentum. It is also important to determine how you allocate your investment in both dollars and time into your marketing to achieve this. 

And, it's a no brainer that investing time and money on marketing that doesn’t work isn’t fun. However, investing in marketing and advertising that provides rewards is. Make sure you’re using the most cost effective channels for your marketing to reach the customers and sales that you want. 

3: You can’t sell a secret

Don’t let your business be “out of mind, and out of sight’. Keeping your brand at the top of your customer’s mind during a recession is vital. Research has shown that ceasing advertising sees overall brand awareness decrease by 24% after six months. Being seen and present consistently, will be remembered by customers, even win you some new customers during a recession. Strong brand awareness will also mean that as consumer spending loosens, your brand will still be thought of, customers will remember the businesses that they've seen during those tight times. Your brand will be there in the back of their minds.

A 2023 NZ Herald article discussed the effects of cutting marketing and advertising during a recession. It gave examples of two businesses that cut budgets and two that invested in marketing. Think about these companies in this scenario.  Reebok and Nike, Pizza Hut and Dominos. 

Marketing Focus During a Recession 

As customer spending patterns change during an economic downturn this often causes business owners to reevaluate many aspects of their business such as their target audiences and adjust their advertising channels and messaging accordingly. Amidst the financial constraints of a downturn business marketing strategies can shift towards:

• More cost-effective marketing – such as leveraging digital platforms which are measurable and can reach a targeted audience
• Maintaining customer engagement – as retaining and building brand loyalty and trust can provide a competitive edge
• Adapting to the changing landscape – businesses must be agile, empathetic, and creative in their marketing approach
• Positioning the business for growth –  ready for when the economy begins to recover.

Promoting your business with effective Digital Marketing 

Embracing digital marketing during a recession ensures adaptability and agility, enabling businesses to pivot marketing efforts swiftly and respond to rapidly changing market dynamics. 

Digital marketing can provide a cost-effective way for businesses to:

• reach a targeted audience 24/7
• maintain brand visibility and engage with potential customers
• offers measurable data and analytics –  allowing businesses to optimise their strategies in real-time based on performance metrics.

About the contributor: All About Whitianga website and digital marketing team 

All About Whitianga has been connecting Coromandel Peninsula business to the right customers for a decade. 

All About Whitianga provides online marketing to get businesses seen by the right customers and connects them to local residents, bach owners and visitors to the Coromandel Peninsula.

Contact our professional marketing team at All About Whitianga to have a chat about how we can help your business engage with online customers 24/7. The team is available for a phone, in-person or a zoom meeting to discuss how you can invest in marketing and position your business for more success. 

Give me a call to talk about maintaining brand awareness, how your businesses can stay top-of-mind with customers, attract new ones, and potentially gain an edge over competitors. Our team have the marketing experience and advertising options to fit a range of budgets to grow your online presence to help you get the customers and sales that you want. 

– Cathy Klouwens, All About Whitianga Owner

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