Marketing in a Recession
"When the going gets tough, the tough increase their advertising." That's the recommendation of Alex Panlilio, brand director for Coca-Cola, and we happen to agree with him, especially as "they" say we are starting to round the corner of recovery.
The tough economic times didn't stop Susan Nolte of May Cookie Co. from starting her business in May of 2008. She knew that her all-natural cookie mixes could be a staple in anyone's pantry, so she meticulously went through the steps to make it happen. And we know just how meticulous Susan is because we partnered with her to help make May Cookie Co. a success. A well-known national home furnishing retailer who carries limited specialty food items will be carrying her line of cookie mixes specifically because of the product packaging and the effort we took to develop a strong image at the point-of-sale that resonates with the audience Susan is targeting.
The power of a brand is its promise to customers. At The Donaldson Group, we work closely with our clients to understand what they need to meet their challenges and develop solutions to best achieve their business goals so that they can make and keep customer promises. In today's tough economic climate, understanding client needs is essential, and building cross-platform solutions that are financially feasible is crucial. Marketing must remain a core competency in businesses today if they want to thrive and grow tomorrow.
It's important to look at your marketing approach with a new perspective. According to Shar VanBoskirk of Forrester Research, interactive marketing will near $55 billion and represent 21% of all marketing spend in 2014 as marketers shift dollars away from traditional media and toward search marketing, display advertising, email marketing, social media and mobile marketing.
We have seen several clients begin to shift marketing dollars away from traditional channels into eMarketing. The Bushnell Center for the Performing Arts has increased online ticket sales by over 200 times in eight years through aggressive email campaigns and a robust online ticketing system, The Connecticut Historical Society is able to accept donations, sell memberships and even consulting services through an innovative eCommerce tool recently installed on their new website. Blue Marble Brands continues to publish websites for their growing family of natural and organic brands, several of which are providing online grocery carts and content tailored to both consumers and wholesale buyers.
EMCOR Group, the global leader in electrical and mechanical construction, energy & facilities services, is relentless about maximizing the use of their digital assets. Consistent SEO, rigorous content management and divisional integration have had tremendous impact on their ability to report 56 consecutive quarters of profitability. In 2010 one strategy is to upgrade their email marketing to further support the growth of their brand. They are one of the savvy companies making sure they're fastest out of the blocks when the hard-hit construction industry begins to improve; they plan to become extremely creative in their marketing approach.
According to University of Michigan economist Richard Curtin in September 2009, "In the coming years, U.S. consumers will save more and spend less," said Curtin, director of the Reuters/University of Michigan Surveys of Consumers. "The recovery will be slow and uneven, and it could take a decade or more for consumers to restore their sense of financial security to pre-recession levels." For businesses this means finding new and efficient ways of reaching new and existing consumers. It means continuing the battle for market (mind) share and not allowing budget restraints to diminish the importance of strategic marketing.
A study by the American Business Press on the relationship between advertising and sales in 143 countries during the 1974-75 economic downturn found that companies that did not reduce advertising expense in either year had the highest growth in sales and net income during the following two years. And during the mostly-recessionary period from 1980-85 McGraw-Hill found those companies that did not reduce their marketing budgets increased sales 16-80%. More evidence that smart companies do not abandon their brands or their marketing in challenging times.
The Donaldson Group consistently helps our clients succeed. Our brand promise is to deliver solutions that meet your needs with the kind of efficiency and excellence you expect from a firm with over 40 years of experience.
