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Marketing During a Recession: How To Weather The Storm

It goes without saying, inflation and high prices on everything from rent to groceries is having an impact on not just the economy here in the United States, but economies across the world. Talks of the ‘R’ word (recession) have been going on for nearly a year now, but with no official announcement, the debate of whether we are in a recession or not continues. As a business owner, you are probably wondering: How can I best prepare? At LTD Connect, our team of marketing specialists is here to guide you through the uneasiness. Keep reading for advice on marketing during a recession and how to weather the storm. 

 

Keep your Marketing Budget!

In tough times, for many businesses the marketing budget is the first thing to get cut – and usually the last thing to return. But, why would a business completely remove a part of the funnel that is essential to increasing brand awareness and generating sales opportunities? Unfortunately, some decision makers view marketing as a cost to the business, however, that simply is not the case. Cutting campaign spend can actually reduce brand awareness, visibility, reach, and engagement. Which is why keeping a healthy marketing budget during times of uncertainty can help retain your share of voice and, in some cases, boost your overall presence in the market.  

 

Share of Voice and Excessive Share of Voice

Share of voice is extremely important when it comes to brand awareness and gives you a good idea of how your business ranks against other competitors in the market. When you maintain, or increase, marketing budgets during economic downturns- you can actually increase your overall share of voice and in some cases your share of voice can be higher than your share of market. In marketing, we call this Excessive Share of Voice (ESOV). In layman’s terms, the business is doing better than it should be doing, and people are noticing you more than the competition.

 

When the selling environment and market return to their previous state, that’s when ESOV becomes extremely beneficial. Because your business has kept its marketing budget in place and your competitors cut theirs back- you actually retain the boost you had during the dark times. Your SOV stays higher, which means people are thinking about you more than the competition when looking to buy. All of this translates to increased market share and in turn more sales. 

 

Connect with us! 

Yes, it is unclear what will come our way. But, it is also true that this, as history has proven, will eventually pass. As marketers, it is our job is to come up with innovative and creative solutions to solve business problems and guide you through the uncertainty. Contact the specialists at LTD Connect today and learn more about how to maintain your status as a leader in the industry even through economic hardships. Our team would be more than happy to give you a detailed plan that is personalized for your business. Reach out to us today! 

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