One Hot Potato: Marketing Your Brand During a Recession
The COVID-19 pandemic has stirred up a real hornet's nest for the lives of many. It has caused many of us to down tools so we can take care of our families and selves. However, as business resumes, marketing may be overlooked as other activities take precedence. After all, customer service, human resources, budgeting and sales need to be taken care of. Yet, it’s important we don’t pass on this hot potato: marketing.
According to the BBC (Chan, 2020), another recession is looming (just as we’ve recovered from the credit crunch of 2008). The UK economy shrunk by 3% in the first quarter of 2020. It’s unsurprising as businesses have been placed on ice and consumers are frightened to shop.
Even so, it may be the best time to market your business. During the recession of 2008-2009, marketers re-evaluated best practices to achieve success during these times (Kotlet and Caslione, 2009). Here are eight factors you should keep in mind when developing your strategy.
Don’t be a greedy guts!
During times of recession, it's best to focus on your most loyal clients. Secure your place in the market through the love of your core customers. If you can take care of your loyal customers, you can ward off competitors. After all, competition will always be fierce.
It’s the best time to invest
When you slash your marketing budgets and sales expenses, you are sending worrying signals to your competitors and customers. It's actually the best time to invest!
One successful strategy is to claim your market share from competitors now. Let's take a reality check... unfortunately, many businesses are going to buckle under the pressure. Be ready to fill the gaps that will be left. Now is the best time to invest in your brand to spread awareness of your organisation, far and wide.It's time to listen
Discover what challenges your customers are facing, frequently. During turbulent times, needs and wants are in constant flux. It’s best to stay close to your customers. Research them more than ever. Old marketing messages are no longer relevant, so will be ignored. Keep your finger on the pulse.
It's time to secure the home front
…So seek to increase your marketing efforts! Place emphasis on your core customers rather than totally new markets. Avoid cutting your marketing budget, at least maintain it. If you are able, it may be worth increasing your marketing efforts in order to secure your home front. Take care of that core customer segment.
Preach and repeat
Hands up! Who's felt anxious during the last few months? During challenging times, we are all worrisome. As consumers, we want to feel safety and security in a company and its products (or services). What can you do to continue communicating that you are a safe bet? Your core values need to be taking centre stage during turbulent times of economic recession.
Be decisive
Customers are quick to notice when a product or service is not for them. If anyone is going to decide the future of a programme, project or product, it needs to be you first. Be quick to cancel any programmes or products which are failing to keep up. After all, a chain is only as strong as its weakest link.
Don’t race to the bottom
There are ways you can appeal to frugal customers during times of recession. When you discount a well-established product or service, it sends out a vote of no-confidence. Customers realise the prices were too high before and they won't be willing to pay full price in the future. Instead, consider creating a sub-brand. This can appeal to value-conscious consumers whilst still protecting your overall brand's integrity. Once the economic situation improves, you have the option to discontinue the sub-brand and its product line.
Remember, your brand can never be strong enough
Don't fall by the wayside! This is even more relevant during times of trouble. What are your top-performing products or services? Reinforce these offerings, communicate your brand's value proposition and find success! Avoid wasting too much effort on marginal products during times of uncertainty.
What are your plans for marketing over the next year? We’re planning to share more resources on the blog, so please do sign up to the Buttercrumble Grapevine below to receive juicy news and updates.
References and Further Reading
Philip Kotler and John A. Caslione, Chaotics: The Business and Marketing in the Age of Turbulence (New York: AMACOM, 2009) pp. 151-153
Chan S. P. 2020. Bank of England warns of sharpest recession on record. BBC [Online]. 7th May 2020. [Date accessed: 9th July 2020]. Available from: here.
