Anti-crisis marketing: how to beat competitors
A recession is a good opportunity to inflict a victim on a rival. Media prices are falling, so advertising becomes more profitable. The combination of low media prices and weak competition gives companies a unique opportunity to cheaply seize market share.
There are truly frightening times for marketing managers. How to react What is the optimal strategy? There are several rules of survival during the crisis period.
Do not panic. Most marketers assume that during the crisis, consumers sharply reduce costs. In fact, consumer spending rarely does fall – they just grow slower, not at a pace of inflation.
Reduce the right costs. The correct ones include administrative costs and even reduced production volumes. In no case can you start saving on the quality of the product or its promotion.
Reducing your advertising costs will inevitably reduce your income. This is the simplest and fastest way to reduce costs, but payback is unavoidable. Studies have shown that firms that reduce advertising costs during the recession typically experience a 20-30% decline in sales and earnings over the next two years.
Reducing the cost of advertising is long-term damage. According to research, advertising has a long-term impact on sales: up to five years after the campaign. Cutting off advertising budgets harms the business in the long run. PIMS analysis shows that firms that reduce advertising need much more time to come out of the crisis, when the economic situation begins to improve, rather than everyone else.
Reducing advertising costs is a risk to the company and brand. Without advertising aid it is much more difficult to maintain distribution and resist pressure to lower prices. With decreasing sales, revenues of nonreclaimed brands are rapidly falling, sometimes with very poor consequences. In the financial markets, this is well known, so there is a tendency to lower prices for shares of those companies, which reduce advertising costs.
Emotions are the key to the success of a brand. The secret of a profitable brand is not to offer discounts and promotions, but to build a strong emotional connection with the consumer. An analysis of about 900 cases published by the World Advertising Research Center shows that emotional-focused advertising campaigns tend to be more profitable than those that bring rational benefits even during a crisis.
Strive for fame. Dress-up radio is a powerful amplifier. In order for your customers to talk about you, you have to do something remarkable. No matter how modest it is, TV still has a lot of significance here. The right mix with online campaigns can double your return.