All great Ad Agencies and Marketers move forward in a recession, and the weak ones move backward.
I thought it might be best to end 2018 on the topic of moving into 2019 with a strategic plan and focus on making the coming year a huge success and driving your business with clarity, focus, innovation and maximum impact.
With global markets, tense, uneasy and ‘on edge’ because of the arrest of a top Chinese executive threatened to spark a crisis, there are signs the US-China trade war can be resolved without further collateral damage to the global economy. The chief financial officer of China’s Huawei Technologies (Meng Wanzhou – the daughter of the tech giant’s founder, Ren Zhengfei) faces extradition to the United States after she was arrested in Canada.
The whole world is watching the talks between Washington and Beijing, hoping a 90-day tariff truce will hold and the sides can end a dispute that threatens hundreds of billions of dollars in trade.
BUT, additionally with Federal Reserve Chairman Jerome Powell and his colleagues consistently marching interest rates up during the Trump Presidency multiple times – I also see a prospect of potentially slowing global economic growth, fading U.S. fiscal stimulus and volatile financial markets too.
1. With Trade Gloom, higher oil prices, additional tightening by the Federal Reserve continuing to weaken developing-nation currencies,
2. The S&P 500 Index has fallen about 10 per cent from a September peak and The Fed raising interest rates three times this year. The latest hike was in September, bumping the fed funds rate 25 basis points to a range between 2 percent to 2.25 percent. This in turn has raised rates for consumers, from mortgages to credit cards.
3. From worries about the US-China trade war to doubts about lofty valuations of technology shares.
I BELIEVE – every experienced Ad Agency and Marketer must remember past lessons from recessions or difficult financial times.
That’s why, I am writing this article to REMIND and REINFORCE – that NEW BUSINESS and GROWTH will be critical to your success in 2019.
MARKETERS SHOULD MAINTAIN THEIR ADVERTISING SPEND IN A RECESSION.
HERE ARE MY 7 KEY REASONS:
- As former chief marketer of Coca-Cola, Sergio Zyman once stated at the American Marketing Association years ago – ‘Marketing money is like fuel in a car. You take the fuel out of the tank, the car stops. You take the marketing out of a brand, the brand stops.”
- Research shows that companies that consistently advertise even during recessions perform better in the long run. In fact, a McGraw-Hill Research study looking at 600 companies from 1980 to 1985 found that those businesses that chose to maintain or raise their level of advertising expenditures during the 1981 and 1982 recession had significantly higher sales after the economy recovered. Specifically, companies that advertised aggressively during the recession had sales 256% HIGHER THAN THOSE THAT DID NOT CONTINUE TO ADVERTISE.
- In recessions or slower times it is critical to ensure your brand is never ‘MARGINALIZED’ OR ‘DOWNGRADED’ especially protect and preserve brand equity that has been nurtured for years, with continued investment in and support of branded products. I believe the worst thing you can do is ‘skimp out’ on products–put less coffee in the cappuccino–as many have in the past for example. That’s critical to remember and NOT devalue your brand or service.
- DON’T CUT YOUR ADVERTISING BUDGET, INCREASE IT. Let your competition cut theirs. When you increase your spending, you increase your share of voice. If your competitors cut back, your message grows even stronger.
- DEVELOP A STRATEGIC MARKETING AND BUSINESS PLANS. So, you don’t waste money advertising the wrong message in the wrong place to the wrong audience. (In my estimation, up to 50% of your marketing and new business success can be attributed to target the right market/segment)
- REASSURE YOUR CLIENTS, BRAND AND CUSTOMERS IMMEDIATELY AND OFTEN. Implement marketing strategies that allow buyers to feel they are minimizing risk by doing business with you. This should always be done in every year and constantly.
- NEVER “CHEAPEN” YOUR ADVERTISING BY TRYING TO SAVE ON CREATIVE OR PRODUCTION COSTS. Your customers will notice and worry about quality. This is a time to stress quality and value. I recommend you printout the entire piece and share it with your sales staff.
#Marketing #Advertising #DigitalMarketing #IntegratedMarketing #DirectMarketing #PR #Data #Results #Creative #Branding #Innovation #Leadership #GlobalMarketing #BrandDevelopment #BrandArchitecture #Success #ProductLaunches #Startups #VC #Technology #Results #Growth #NewBusiness #Winning #Influence #InfluencerMarketing
More about Geoff De Weaver:
CEO, Speaker & Author, ‘How To Win New Business – Proven Trends, Tips & Tactics’
Super strategist who directs Fortune 500 clients to define their vision, create a strategy, and harness their internal innovation to grow their business or reinvent their products. Expert at building and transforming brands, businesses, and digital and physical customer experiences at scale.
Amazon Authors: https://www.amazon.com/Geoff-De-Weaver/e/B007DAEKFG
Latest Book: “How To Win New Business: Proven Trends, Tips & Tactics”: https://www.amazon.com/dp/1718669046