TUSLA, Okla., July 17, 2023 /PRNewswire/ — A Midwest-based PR and marketing firm, Resolute, released a guide for businesses to maintain market share during an economic downturn. In response to price increases, marketing budgets tend to be the first to be cut across industries. However, Resolute CEO Nicole Morgan shares that businesses need to spend money to make money.
“While we’re not currently in a recession, financial experts have indicated we may be heading in that direction. It may seem counterproductive, but maintaining a marketing spend during an economic downturn leads to increased brand awareness, workforce retention, and long-term growth.”
Recessions don’t last forever. Historically, 75% of recessions end within a year and 30% only last two quarters. Instead of slashing budgets, consider optimizing strategies.
Stay Top of Mind with Brand Awareness
During a recession, consumers are more selective about spending. By investing in marketing, businesses can stay top of mind with consumers, which increases chances of being considered during purchasing decisions.
Building awareness and maintaining loyalty can help minimize business risk and project a state of stability to your customers. A creative marketing campaign can help differentiate your brand and increase appeal.
Workforce recruitment
Attracting and retaining talented employees is a critical aspect of growing any business. Marketing your competitive benefits is an investment that can lead to profitability in the long run.
On the flip side, building positive brand awareness can reduce reputation damage from layoffs or other cost-saving cuts.
Gain a competitive advantage
With less noise in the marketplace, businesses that continue to invest in marketing can gain competitive advantage to better reach their target audience.
Even if your budget remains the same, your competitors may decrease their spending, which creates less competition for ad space.
Marketing for long-term growth
While it may be tempting to reduce marketing expenses, businesses that do so risk sacrificing growth. Marketing contributes to long-term business success by building brand awareness, generating leads, and driving sales.
While reducing marketing spend may help your bottom line, this short-term strategy may hurt business down the road. Even though customers may not make certain purchases during a recession, they will remember brands that remained consistent.
Once the economy improves, customers are more likely to return to brands they remember and trust.
Adapting to the market during a recession
During a recession, consumer behaviors and preferences may change. By investing in marketing, businesses can gather data on marketing trends and adjust strategies accordingly, ensuring they remain relevant and meet customer’s needs.
In short, investing in marketing during an economic recession can help businesses maintain their visibility, gain competitive advantage, drive long-term growth, and adapt to changes in the market. Continued marketing outreach and strategy development can help you thrive, not just survive, and outlast an economic recession or downturn.
About Resolute:
Resolute delivers bold and purposeful PR, marketing, and workforce recruitment strategies. Centered on research, innovation and brand-driven ROI, its award-winning team delivers proactive, pioneering ideas that move clients toward their goals. Learn more: www.resolutepr.com.
SOURCE RESOLUTE PR