In a time of economic hardship, many companies decide to decrease or even eliminate their advertising budget. It’s often the first thing to go, but is it the right choice?
Studies performed by companies such as McGraw-Hill Research and Meldrum & Fewsmith have shown that businesses which continue or increase their advertising efforts during a recession not only increase sales and profits during the recession period, but for years after as well. Those are the companies that come out on top, and it’s all about staying in the mind of your consumer.
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Awareness is the first step in mastering the Four “A” Metrics. You must build continuous Awareness and at the same time create an Affinity that motivates your consumer to take Action and purchase your product or service. Analytics is how you measure the effectiveness of your efforts – how the process has driven sales and ultimately profits.
An increase in advertising and marketing efforts doesn’t necessarily mean an increase in budget. It’s important to allocate funds in the most effective direction and not discontinue placement in the areas where you’re getting the best return on investment. Focus the message to your audience and place that message where they are most likely to see it and respond.
Even during economic hardship, consumers still need to purchase products and services. Who will they choose to do business with? If you’re not in the mind of your consumer, it probably will not be your company. The bottom line is that consumers need to be aware that you are actively pursuing their business and loyalty and, whether you believe it or not, that will affect your bottom line. Think of the money you spend on advertising as an investment in the future of your business.