5 Important Marketing Tips in a Time of Downturn

Usually, companies resort to reducing costs during downturns, which inevitably means reducing marketing budgets, but evidence has proven this wrong.

A report issued by the global "Brand Finance" Corporation revealed that there are 5 reasons for companies to increase their marketing budget during the downturn, the same as the world is currently suffering from.

The International Monetary Fund expected that the global economy would contract by 4.4% by the end of 2020, in light of the closure of many world economies during intermittent periods of the year, as part of the precautionary measures for the Corona pandemic.

In light of this, the five factors driving the increase in marketing expenditures in the midst of the downturn are as follows:

1- Prepare to recover

A McGraw-Hill study of 600 companies during economic downturns showed that entities that maintained or increased allocations to marketing spending were able to increase base revenues once the economy recovered.

2- The high volume share

Brands grow when the share of the loud voice is greater than the market share, that is, businesses grow larger, especially banking, when marketing campaigns intensify during the downturn, in parallel with competitors reducing expenses, which allows campaigns to have a greater impact than they can record during normal periods of the economy.

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3- Preserving value

Strong brands are characterized by working better at preserving value and generating revenue during recessions by building a distinct network of relationships with customers who place their trust in these brands, which creates a strong incentive to maintain or increase the level of marketing activities.

4- Less expensive and more effective

Investing in building or marketing a brand is not only less expensive in downturns, it is also more effective and lasting in customers' memories.

The Japanese economy is recording its largest contraction since 2014

Marketing campaigns during difficult economic times should combine a mixture of the rational component based on the product and the emotional component associated with building brands, given that decision-makers during these periods have greater susceptibility to influence, and customers await evidence of the stability and continuity of the product and operational performance.

5- Don't let your being prey in the hand of storms

If you do not control the management of your brand and the reputation of your company, you will get the mark provided by the market and not the one you want to achieve, so the intensification of marketing campaigns in the midst of implementing the precautionary measures contributes to improving the reputation of companies and helps society recover from the Corona pandemic.