Seems illogical when the volume of sales in virtually every industry has suffered during our current economic challenges. Well the same is true of your advertising.
It is illogical to stop advertising during downturns in business. Most who do, believe they are saving money. The truth is there is a huge opportunity cost to that strategy. Advertising (marketing) is the life’s blood of 90% of businesses in every industry. Even if the return on investment is lower in a down economy, businesses that have thrived on their advertising will continue to do better, if they continue to advertise in a reduced sales environment.
Cut backs are one thing. Sometimes, they are unavoidable. But cutouts can create an accelerated downward spiral that is not only costly in the short run, they can undermine future sales, even when stability returns to the market. continue to advertise when your competitors have stopped and you will create a share-of-voice advantage that will increase your market share (even if short term volumes reduce) and those market shares will continue to pay dividends as markets fortify themselves.
So budget for advertising, just like you do for your labor force and electric bill. And times will take a lower toll on your business. Let your competition wonder how you grew when there was little chance of a good harvest. You’ll know the answer was rain, and advertising caused it.
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on Thursday, July 9th, 2009 at 10:54 am and is filed under Commentary.
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Fire Your Best Sales Person
Seems illogical when the volume of sales in virtually every industry has suffered during our current economic challenges. Well the same is true of your advertising.
It is illogical to stop advertising during downturns in business. Most who do, believe they are saving money. The truth is there is a huge opportunity cost to that strategy. Advertising (marketing) is the life’s blood of 90% of businesses in every industry. Even if the return on investment is lower in a down economy, businesses that have thrived on their advertising will continue to do better, if they continue to advertise in a reduced sales environment.
Cut backs are one thing. Sometimes, they are unavoidable. But cutouts can create an accelerated downward spiral that is not only costly in the short run, they can undermine future sales, even when stability returns to the market. continue to advertise when your competitors have stopped and you will create a share-of-voice advantage that will increase your market share (even if short term volumes reduce) and those market shares will continue to pay dividends as markets fortify themselves.
So budget for advertising, just like you do for your labor force and electric bill. And times will take a lower toll on your business. Let your competition wonder how you grew when there was little chance of a good harvest. You’ll know the answer was rain, and advertising caused it.
Tags: Advertising, Marketing
This entry was posted on Thursday, July 9th, 2009 at 10:54 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.