Trigger Marketing

The news media are working overtime to scare the hell out of us. Everyday, all day we hear about a looming recession, increased prices and all around fear.

Unfortunately we can’t control what the media says, but we can control our own businesses.

When the economy slows the first thing most small businesses do is cut their marketing and advertising spending.

This is probably the worst and stupidest thing you could possibly do.

Here’s why.

1. Your customers will still need things. Maybe they won’t buy as often or as much, but they still need things, so if you stop telling them why they should buy from you, they’ll find someone who will.

2. If your competitors are like most small business owners they’ll cut their marketing and ad spending. This is a great opportunity for you to grab up more business. When the economy slows great businesses grow because they don’t panic, they communicate with the market and provide good value.

3. Cutting your advertising during a market slowdown makes it much harder to recover

At the same time don’t get caught up in heavy discounts and lowering your prices. Reliance on price incentives as a marketing tool is dangerous — it devalues your brand, and it’s hard to wean consumers off it.

Here are some things you should do

• Focus on advertising with clear and proven return on investment, such as Internet and promotional advertising.
• Be prepared to cut budget bloaters like trade shows, which have a harder time proving ROI.
• Focus on your brand’s core base, instead of going after more expensive new customers

Note of Interest
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business Firms that Maintained or Increased their Advertising Expenditures during the 1981-1982 recession Averaged Significantly Higher Sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were Aggressive Recession Advertisers had Risen 256% over those that didn't keep up their advertising.

In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that Advertising Aggressively during Recessions not only Increases Sales but Increases Profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.

To learn more, download our free eBook "Seat of your pants marketing - The 10 biggest mistakes small businesses make and what to do about it"

Back to Articles