Marketing In A Recession And Why It’s Important

Marketing in a recession is more important than ever, but it’s often a time when most businesses pull back on their marketing efforts. In times of economic downturn, businesses often look for ways to cut costs, and marketing is one area that is commonly targeted. 

But cutting back on marketing costs can have a detrimental effect on your business in the long-run. Economists predict a recession is likely in 2023, which means, being as prepared as possible is key. This involves maintaining a strong marketing strategy to ensure your business not only survives but thrives. 

Historical recessions show that the companies who increased their spend on marketing were the most successful in bouncing back when recessions were over. They did, however, change their approach and strategy as to where they were going to invest their time, money and energy in order to make sure their marketing was the most effective. 

Why marketing in a recession is important

Recessions are tough and scary times for businesses, understandably so as they can have very real repercussions. But as uncomfortable as they are, they are also a time of opportunity. 

Remember that recessions are a regular part of a healthy economy and their lengths vary, and whilst this doesn’t make them any easier to navigate, knowing that they will end and eventually the economy will recover is good to remember when the fear it creates gets overwhelming. 

By continuing their marketing in a recession, businesses have the chance to stand out from their competitors, maintain or increase their market share, and even grow their customer base. 

Reasons not to pull back on your marketing in a recession

Think about your biggest competitor cutting back on their marketing spend. By the time the recession is over, who will have the most sales? Most likely it will be you. Here are some more reasons not to pull back on your marketing in a recession.

• You maintain brand awareness.

The last thing you want to do is fall into the shadows of a recession as competitors move more into the spotlight. But a decline in your brand awareness is exactly what cutting back on your marketing efforts can lead to. This is particularly true for businesses that rely heavily on advertising to reach their target audience. By continuing to put your business out there with consistency, as much as possible, you can keep your brand top of mind and ensure that your customers don’t forget about you.

• Seize market share. 

During a recession, some of your competitors may scale back their marketing efforts, giving you an opportunity to seize market share. By continuing to market your business, you can attract customers who might have otherwise gone to your competitors. 

• Build customer loyalty.

During tough times, people are looking for businesses they can trust. By continuing to market in a recession, you will be staying top of mind, building customer loyalty and ensuring your customers stick with you during the recession and beyond. 

Marketing tips to thrive, not just survive

To thrive during a recession, your marketing strategy needs to be more than just ‘good enough’. You need to be creative, agile, and willing to try new things. 

Marketing is about experimenting with new ideas and what works for your business, innovating and changing things up as you go. Here are some marketing tips to help your business not just survive, but thrive during a recession and beyond:

• Focus on digital marketing.

With more people spending time online, digital marketing has become more important than ever. Consider investing in search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing and email marketing to reach your target audience where they are.

• Offer value.

How are you helping your customers through this tough time? How are you solving their greatest problems and fulfilling their greatest desires? When the economy struggles, people turn to the businesses offering the most value. Consider offering discounts, freebies or other incentives to attract customer’s and build loyalty.

• Pivot your messaging.

Think about how the needs and priorities of your customer’s may have shifted. Make sure your messaging reflects this by highlighting how your products or services can help customers save money, solve problems or improve their lives. 

• Collaborate or partner with other businesses.

Working with other businesses can be a great way to reach new customers or share your marketing costs. Look for businesses that complement yours or that serve a similar customer base. This can be a cost-effective way to find new customers and improve your reach.

Marketing success in a recession

Marketing in a recession can be challenging, but it’s not impossible. When consumers are more cautious about their spending, they’re looking for products and services that offer real value. 

One company that thrived with marketing success in a recession is Amazon. During the 2008 financial crisis, Amazon was one of the few companies that continued to invest heavily in marketing. They ran targeted campaigns that highlighted their low prices and free shipping offers, which resonated with cash-strapped customers. As a result, Amazon’s revenue continued to grow throughout the recession, and they emerged as one of the strongest players in the e-commerce space. 

Of course, Amazon is a giant, but it’s absolutely possible for smaller businesses to find marketing success in a recession too. For example, a local restaurant might offer a recession-friendly menu that features affordable, high-quality meals. They might also run promotions that encourage customers to visit more frequently, such as loyalty programmes or happy hour specials. 

Or, they might create an attractive book swap corner that promotes community and togetherness, and allows people to drop books off to then pick up a new book. They might make their restaurant dog-friendly, with water bowls and dog treats, so that dog lovers don’t have to leave their pooches at home or choose another dog-friendly restaurant down the street. 

Make the customer experience exceptional

By focusing on value and building strong relationships with their customers, and by really thinking carefully about what customers really want, small businesses can weather economic downturns and come out stronger on the other side. 

The companies that achieve successful marketing in a recession are those that focus on the customer experience by understanding who their customers are and what their needs and concerns are. They offer products and services that provide real value, and they communicate their value proposition clearly and effectively with consistent brand messaging. 

Plus, today brands that have a purpose and align with causes and issues their customers care about will stand out too amongst their competitors, so this is something to think about when building your marketing strategy too. Why not check out our blog, ‘will you be a business with purpose in 2023?’

Ultimately, if you have a great solid foundation in your marketing, and you continue to drive forward and innovate, you can absolutely not only survive, but thrive in tough economic times. 

If you want to be proactive and build a solid foundation in your marketing, check out our self-paced 6 Steps to Marketing Clarity course, which will help you nail those solid foundations so you can grow your business effectively from there!