Albers

Marketing Tip
Marketing in a Down Economy
August 2008

The first thing businesses usually cut when budgets are tight are their marketing and advertising budgets. To those of us in marketing, we know that is the LAST thing you should cut when business is bad. However, it can be a challenge to convince clients, higher ups, those in control of the budget, or even to justify marketing expenses for your own business. However, there is a real upside to investing in marketing when the economy is down. In fact, it can be a very savvy move.

There have been many studies that have examined recessions since the Great Depression. Here is just a sampling of what they have shown:

• Businesses that invested more in marketing in a down market realized a 4.3% increase in their ROI
• Advertising aggressively during recessions not only increases sales but it also increases profits, and at a far greater rate than those firms that cut back
• Marketing during a time of economic difficulty solidifies your client case, portrays you as stable, takes business away from less aggressive competitors and positions your firm well for post recession growth
• Businesses that increased their marketing efforts during a recession gained market share three times faster in the two years following a recession

The bottom line is simple. The best time to buy stocks is when the stock market is down. Same with real estate. Investing in your business through aggressive marketing during a down economy will not only reap you benefits NOW, but will also allow you to poach market share from your skittish competitors. That market share you gain will pay off now, and exponentially when the economy rebounds.

To see how Albers, Inc. can help your business maximize your marketing dollars and effectiveness, contact us.