As the economic downturn continues, businesses can become reluctant to continue investing in their marketing spend as they look to tighten their belts.
However, history has shown that a downturn is the best time to focus on your marketing so that when things turn back around, and they always do, you are a step ahead of your competitors and front of mind when opportunity comes knocking.
Key Stats to Understand Before Getting Started
According to a study by the Harvard Business Review, companies that maintained or increased their marketing spending during the 2008-2009 recession experienced higher sales growth both during the recession and in the following years. Here are the key statistics from experts:
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- The American Business Press found that companies that continued to advertise during the 1981-1982 recession saw an average sales growth of 256% over the following three years, compared to those that cut advertising budgets.
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- A Nielsen study revealed that 58% of consumers believe companies that advertise during a recession are more trustworthy and reliable.
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- A survey conducted by the American Association of Advertising Agencies (4A’s) found that companies that maintained or increased their marketing spend during a recession had, on average, a 275% sales growth compared to those that reduced their marketing budget.
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- According to a report by McKinsey & Company, companies that invest in marketing during a downturn have a higher chance of emerging as market leaders when the economy recovers.
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- A study published in the Journal of Advertising Research found that businesses that increased their advertising expenditure during an economic slump achieved a higher market share, return on investment (ROI), and profitability compared to their competitors.
These statistics demonstrate the positive impact of maintaining or investing in marketing in a recession. By leveraging these insights, you can position your business for long-term success, even in challenging economic conditions.
How Can RMH Consulting Help?
Invest in marketing today for a resilient future! Don’t let the fear of a downturn hold you back. Seize the opportunity to elevate your brand, outshine your competition, and secure a strong future. We are ready to be your strategic partner, guiding you through.
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- Expertise and Experience: Our agency brings a wealth of marketing expertise and years of experience to the table. We have helped numerous businesses thrive during challenging economic times, and we understand the nuances and strategies required to achieve success. Over Covid, as well as our regular clients, we worked with the New Zealand Government to deliver crucial strategy workshops to struggling businesses. We can help you work out where to cut spending, and where you can optimise your marketing efforts.
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- Customised Strategies: We don’t believe in one-size-fits-all approaches. Our team takes the time to understand your business, target audience, and industry dynamics. With this knowledge, we craft tailored marketing strategies that align with your goals and position you for success, even in a recessionary environment.
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- Data-Driven Approach: Our decisions are driven by data and analytics. We leverage the latest tools and technologies to gather insights, measure performance, and optimise campaigns. This data-centric approach allows us to make informed decisions and continually refine our strategies for maximum impact.
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- Agility and Adaptability: In times of uncertainty, flexibility is key. RMH Consulting prides itself on its ability to adapt quickly to changing market conditions. We stay ahead of the curve, monitor industry trends, and adjust strategies as needed to ensure your marketing campaigns remain effective and relevant.
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- Proven Results: Our track record speaks for itself. We have helped businesses across various industries thrive in recessions and achieve sustainable growth. We have consistently delivered exceptional results that exceed our clients’ expectations. Just check out our case studies!
