Why Companies should invest in marketing during Economic Down Times.

With the official announcement that the United States has been in a recession for the past 12 months, many marketers are cutting spending out of fear of reduced consumer expenditures. However, a recession presents an opportunity for incisive marketers to increase market share by maintaining or even increasing their marketing investment.

In a recession, there are three long-term benefits of investing in marketing:

1. Maintain momentum in the marketplace, especially when competitors are sitting on the sidelines and disappearing.

2. Increase your brand equity and drive short-term sales at the same time.

3. Increase your share of voice, and therefore your share of market which will help you come out of the recession faster.

According to Mark Schofield, president of Keating Magee, “Keating Magee has weathered the oil bust of the 1980s, the tragedy of 9/11 and the ravages of Hurricane Katrina. In each instance, not only did we recommend to our clients that they increase — or at least maintain — their marketing efforts, but we as an agency did the same. The result? Keating Magee had a record breaking year after Hurricane Katrina.”

In its white paper, “Marketing in a Recession,” Keating Magee advises companies to consider several strategies.

First, do not cut marketing budgets; rather, invest in yourself. This may mean a different approach, one that is more consumer sensitive.

Schofield explains, “We advise our clients to sharpen their strategic focus to use messaging that is empathetic to the consumer’s concerns.”

Second, relationships become even more important, especially to retain current consumers. Marketers that accentuate value, reliability and durability can counter the consumer’s concerns.

Schofield says, “Examine your client base to identify what they value. By researching the consumer, you will be in a better position not only to maintain but also to grow your business.”

Third, accountability is critical. Strategies that can be carefully measured, such as online, are often priorities.

Fourth, consider public relations, which offers a cost effective way to generate buzz about your product or service.

In conclusion, consumer habits are likely to shift during a recession, presenting great opportunities for innovative marketers. Astute marketers can create product or service innovations that are a result of the
recession and pinpoint a new and untapped consumer.

To download the white paper CLICK on link below:
http://www.keatingmagee.com/downloads/smart-marketing-in-a-recession/img/marketing_in_a_recession.pdf>