Well there’s no denying we’re all in for a bumpy ride next year. But there’s hope! So get yourself out of the foetal position and pay attention to the following steps (and it’s not all about search or acquisition) in tough times. Some of the worlds biggest brands have been built out of tough times.
The following article from business week says it all really!
History shows that a recession can be an auspicious time to invest in a brand. Some of the most successful brand campaigns in the past six decades began during economically challenged years. Of Advertising Age‘s “Top 100 Ad Campaigns of the 20th Century,” fully a quarter that got under way after 1945 did so during recession years. Several of the most effective were launched in the ugly years of 1974 and 1975, when consumer spending tanked and gas and commodity prices soared (sound familiar?). In 1974, for example, BMW introduced itself as “The Ultimate Driving Machine,” a slogan that endures to this day and helped turn the German automaker from a niche sports sedan in the minds of American drivers into a top luxury auto brand known for superior engineering in everything from roadsters to SUVs. “I love bad times,” says Martin Puris, the adman who came up with the slogan. “In good times, people are less apt to try new things. In bad times, they have to start to do things better.”
Read the full article here
An excerpt from Ad Age’s article “recessions can be a marketers best friend” says much the same thing:
Gut-wrenching news, layoffs and budget cuts aside, history shows recessions have been some of the best times for media and marketing innovation. For marketers who kept their wits, economic valleys — the deeper the better, in fact — became foundations of empires. …
You have to be a member to access this one (at $190 US) so only bother with this link if you’re prepared to prize open your recession fearful wallet!
Suffice it to say that many of the usual suspects dominate these pages
Recession-built brands
Here’s a summary of an article from the Harvard Business School:
In a recession, consumers become value oriented, distributors are concerned about cash, and employees worry about their jobs. But a downturn is no time to stop spending on marketing. The key, says professor John Quelch, is to understand how the needs of your customers and partners change, and adapt your strategies to the new reality. Key concepts include:
Harvard Business School Lecturer
- Brands that increase advertising during a downturn can improve market share and return on investment.
- Early-buy allowances, extended financing, and generous return policies motivate distributors to stock your full product line.
- In tough times, price cuts attract more consumer support than promotions.
- CEOs must spend more time with customers and employees.
Read the full article here
