Stand By Your Brand
Yes, America is in the midst of an economic crisis. We hear a cacophony of voices reminding us of that day in and day out. But if you dig deeper, you'll uncover opportunity for brand building even in the midst of a sluggish economy.
History teaches savvy marketers that recessions offer a chance to be even more creative and push the envelope with new approaches to spreading the brand message. In fact, according to Business Week, at least 25 percent of Advertising Age's "Top 100 Ad Campaigns of the 20th Century" launched during recession years. For example, in 1974, during a time of low consumer spending and high commodity prices, BMW introduced its slogan, "Ultimate Driving Machine," which is still successfully in use today.
Several studies have shown that slower economic times weed out weaker competition, allowing strong brands to solidify their market share. And by increasing your marketing spend during a time when competitors are scaling back, you can do more than increase market share; you can also get a better ROI at a lower initial cost. In fact, in "Innovating Through a Recession," Northwestern University professor Andrew J. Razeghi reports that businesses that maintained or increased their ad spends during the economic downturn in the early 1980s averaged higher sales growth during that time and in the following three years. By 1985, sales of the businesses that maintained or increased their ad spends during that recession had risen 256 percent over those that had cut back on advertising. On the other hand, the Strategic Planning Institute found that during the economic expansion beginning in 2002, 80 percent of businesses increased their advertising spend but saw no improvement in market share.
It's a delicate balance. But a smart investment in building your brand – even during these tough economic times – will most certainly pay dividends in the long-term.
The Forbes Funds, a unique resource for Pittsburgh nonprofits, recently showed the vision to continue promotion of its mission – even in a difficult economy. The organization bi-annually publishes a quick-reference guide to regional nonprofits, with a focus on showcasing excellence in the industry. In 2008, The Forbes Funds partnered with Brady Communications to produce the third version of this well-received resource, acknowledging the importance of keeping this vital tool available to those who rely on its regular release. The resulting publication, Community Threads Vol. 3, was designed to be both affordable to the nonprofit as well as long-lasting. The book allows The Forbes Funds to continue to reach a core audience and provide a valuable service without sacrificing their brand or their bottom-line.
Staying committed to your brand and continuing to strategically market it in slower economic times can be a difficult decision to make. Even though you might have to cut costs to stay fiscally healthy, be sure not to overlook the devastating impact that abandoning brand promotion activities can have on your revenue stream.
Here are some tips for keeping your brand strong in a recession:
Think about all your customers, not just new ones
According to "Leading on the Edge of Chaos" by Emmett C. Murphy and Mark A. Murphy, maintaining strong brand presence and loyalty with existing customers is five times less costly than attempting to gain new customers. Marketing during slower economic times when there are fewer competitors allows you to turn on-the-fence customers into diehards. Strongly promoting your brand in a downturn builds confidence with existing customers while allowing new customers to notice you in a less crowded marketplace.
Don't unnecessarily damage your brand presence with discounts
Abandoning the essence of your brand for short-term gains can be a disaster in the long-run. Many companies will see a drop in sales and immediately cut prices, looking to make up lower profit margins with volume. But your customers may equate lower prices with lower quality, an assumption that could stick with them when their disposable income returns. Instead of cutting costs, look to increase value by providing free add-on products or services, allowing you to continue to demonstrate your brand value while generating sales.
Focus on the low- or no-cost ways to strengthen, promote and improve your brand
Brand building doesn't always have to involve a cash spend. Think of the ways you can improve your brand without investing in advertising or collateral materials. Do your customer service reps need a brushup on how to interact with customers in an on-brand manner? What about the way each and every employee interacts with key contacts? Now's the time to get back to basics. Money-crunched consumers know there are fewer people buying, so they'll be expecting near-perfect service and top-of-the-line responsiveness from those brands they do choose to buy from.
Hone your messaging
This is another low-cost method to improve brand perception. When was the last time your company stepped back and reviewed its overall messaging platform at the account, industry and corporate levels? A downturn is the perfect time to get focused again, making sure that your brand message is crystal clear and consistent across all touchpoints.