In times of economic crisis, your first instinct will understandably be to cut budgets. But did you know that share of voice gets cheaper during an economic downturn? Share of voice (SOV) measures how much of the market your brand owns relative to the competition.
Overall market spending decreases during a recession. So, if you’re not careful, you could end up handing over market share to your competitors by reducing your marketing spending. The key is to be strategic about your marketing during an economic downturn.
Here are three marketing growth strategies to consider during an economic recession.
1. Invest in Advertising and Marketing
Since SOV is cheaper during an economic downturn, you have great opportunities to increase your brand’s presence and capitalize on the crisis. Consider Professor David Reibstein’s input in the Markets in Motion research initiative he led.
In this study, Reibstein describes how recessions are the best time to invest in gaining market share and building brands. Other brand managers tend to reduce advertising budgets even without proof of their short- or long-term profitability.
While others put their investments on pause, you can take advantage of the situation by maintaining or even increasing your marketing budget. Doing so will help you stay ahead of the competition and emerge stronger after the crisis.
For example, gas prices in 1975 were higher than usual at the time. Ford reduced its advertising initiatives by 14% while Chevy stepped theirs up. This move proved fruitful for Chevy since it left Ford needing five years to catch up to Chevy’s sales.
In general, this strategy is about speeding up while others are slowing down. While the recession occurs, you let customers know that you’re present. When they see you during these times, they’ll remember you after the recession as well.
2. Innovate and Launch New Products
Another strategy that branches out from advertising and increasing visibility is to launch new products. While the rest of the market is quiet, you can take advantage of the silence by highlighting your latest innovation.
Sure, it might seem counterintuitive and even risky to introduce something new in an uncertain market. But, since customers still expect you to continue delivering, they’ll appreciate your focus on meeting their needs.
Moreover, Professor Reibstein’s initiative mentioned how companies that were brave enough to utilize their resources during an economic crisis have been able to grow market share and profits.
As you focus your budget on innovation, you are more likely to return to pre-recession levels faster than your competitors when the economy stabilizes. You can even exceed those numbers if you have the right strategy!
3. Hire an External Marketing Team
Despite the economic crisis, you must maintain a certain quality of work you produce. Otherwise, you damage your reputation. Consider working with a digital marketing agency for more insight into the marketing growth strategies that work for your situation.
With an external marketing team helping you reduce marketing overhead, you have more room to focus on your core competencies while you get expert input about the best moves that make sense for your brand.
Cactus Club is a design, strategy, and digital marketing agency ready to guide you in times of economic downturn. Get in touch with our external marketing team today!