Selling During a Recession

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Why companies shouldn't stop spending on Advertising.

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Selling During a Recession

  1. 1. Advertising Strategies for Slower Economic Periods How to Steal Market Share While Your Competitors Cut Costs
  2. 2. Opportunities Exist RIGHT NOW for Smart Advertisers and Marketers <ul><li>The Wall Street Journal published a well-researched series in the 1990’s called, “ The Value of Advertising. ” </li></ul><ul><li>While today’s economy is hardly in the shambles it was in the early 90’s, similar opportunities exist for smart marketers with competitors cutting back advertising and marketing during this tough economic time. </li></ul>
  3. 3. Opportunities Exist RIGHT NOW for Smart Advertisers and Marketers <ul><li>A McGraw Hill study of the 1981-82 recession found companies that reduced advertising showed a modest sales bump of 19% between 1980 and 1985. </li></ul><ul><li>Companies that continued strong advertising GREW SALES BY 275% during the same period! </li></ul>
  4. 4. Are We Officially in a Recession? <ul><li>If so, we suggest you </li></ul><ul><li>choose NOT to participate. </li></ul>
  5. 5. Here Are the Facts <ul><li>Recessions don’t last long. </li></ul><ul><li>What YOU DO during a recession lasts much longer. </li></ul>
  6. 6. The Resilience of the Consumer Economy <ul><li>Consumer spending has INCREASED during every recession. </li></ul><ul><li>Employment does NOT significantly decline during a recession. </li></ul>
  7. 7. Brand Awareness During a Recession <ul><li>Advertisers who do NOT cut advertising come out of a recession DRAMATICALLY stronger than those who cut advertising. </li></ul><ul><li>Cutting advertising during a recession has a HUGE NEGATIVE IMPACT on success after the recession. </li></ul>
  8. 8. Sales/Net Income at Three Levels of Advertising
  9. 9. Why Is This the Case? <ul><li>When competitors cut back and you continue strong, your “Share of Voice” improves . </li></ul><ul><li>” Share of Voice” is NOT how much you spend; it is how much you spend relative to others in your same category . </li></ul><ul><li>In a slow economic environment, gaining a greater “Share of Voice” becomes easier when others are cutting back. </li></ul><ul><li>You can greatly impact your success over the next several years! </li></ul>
  10. 10. An Opportunity to be Aggressive <ul><li>Cutting back advertising in a soft economy may actually COST you MORE THAN YOU SAVE. </li></ul><ul><li>A soft economy offers a huge opportunity to position your business for much greater future success. THE FOREIGN CAR COMPANIES ARE DOING THAT RIGHT NOW THROUGH HIGHER ADVERTISING WHEN COMPETITORS ARE CUTTING BACK! </li></ul><ul><li>You also benefit DURING the slow period if you advertise the right way. </li></ul>
  11. 11. Advertising Strategies for Slow Economic Periods How to Get the Most from the Money You Spend
  12. 12. Recommended 3-Step Strategy <ul><li>Concentrate on dependable advertising vehicles. Generally, the bigger, more established, proven properties are most effective. This is not a good time to experiment. </li></ul><ul><li>Focus on targeting your best prospects. </li></ul><ul><li>For most businesses, 70+ percent of people will NEVER be regular customers. It is likely that most of your sales come from less than 30% of the people that walk through your door. Control advertising waste and increase effectiveness. This gives you more dollars to increase frequency and advertise when your competition isn’t. </li></ul><ul><li>Frequency is the key. </li></ul><ul><li>Advertisers who pull back also lose sight of the crucial importance of repetition. The more exposures, the more consumers like your brand. </li></ul>
  13. 13. Frequency Leads to Quality <ul><li>A far-ranging study conducted by the Advertising Research Foundation found that low levels of advertising resulted in minimal gains in awareness, while higher frequency triggered gains of up to 600%. </li></ul><ul><li>Moreover, research proves that positive feelings toward any brand are directly related to the number of advertising exposures or messages sent out. </li></ul>
  14. 14. How Advertising Sums Up the Opportunity <ul><li>TARGETING. Advertising makes your marketing dollars work harder because you’re targeting the right people, those most likely to be loyal or potential customers. Because your dollars are focused on your most important consumers, radio is perfect for tight budgets. </li></ul><ul><li>FREQUENCY. Employing advertising’s unique ability to provide repeated messages dramatically boosts awareness, positive feelings, and product usage. </li></ul>
  15. 15. Your Tomorrow Could Depend on How You Advertise Today <ul><li>The return on your marketing expenditures is actually much higher when your competitors can’t or aren’t advertising. </li></ul>

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