Why You Must Market During a Recession
During the Great Depression that began in 1929, many companies we still know today kicked into high gear with aggressive marketing while their competitors cut the marketing budget. Proctor & Gamble is a prime example; even though shareholders screamed for less advertising, P&G increased it while their competitors cut back or discontinued it. As a result, P&G survived the Great Depression financially healthy. Almost 70 years later, P&G is still a well-known firm because during each recession that came after the Depression, they increased their advertising. You can bet they’re increasing their marketing now because they’ve proven to themselves that the strategy is smart.
So how does this 70-year old business strategy apply to you today? Get thinking the way successful companies did in times far more difficult than what we’re facing now. If you don’t adapt, you may find yourself falling behind and unable to catch up. Don’t just float down the stream — swim against the current.
Marketing is absolutely critical now; nothing could be more important. It’s not enough to have your website design up and running smoothly – something has to drive traffic to it. A study published by Penton Media in 1993 stated that “businesses that maintain aggressive marketing programs during a recession outperform companies that rely more on cost-cutting measures.” McGraw-Hill Research found the same results after the 1981-82 recession: companies that had maintained or increased their advertising during the recession enjoyed an average sales growth of 275% over the next 5 years, and those who cut their advertising only saw 19% growth.
Marketing is an investment, not an expense. That’s not a theory, but a historically proven fact. It worked during the Great Depression and in every recession since then, and it will work today.
If you no longer have the necessary marketing resources internally because of budget cuts, or never had a marketing department, consider hiring a graphic design and web designer firm like Tingalls Design.
If you’re serious about staying in business throughout this recession, the wisest approach historically is to market yourself vigorously. Stand up and be noticed!