By DWN Staff
When a sluggish economic period sets in, many businesses swiftly resort to playing safe, which commonly means scaling back or halting marketing initiatives. While this is a rational move in the short run, it can result in long-term damage that could be hard to repair when the economic tide turns.
Digital Wealth News recently met with Teresa Leno, CEO and Founder of Fresh Finance, to gain her insights into what wealth industry organizations should be doing regarding marketing in a slow economy.
“The rationale behind increasing marketing during a slow economy is essentially tied to the basic principles of supply and demand. When most businesses are pulling back, the marketplace becomes less crowded. This economy offers an invaluable opportunity for businesses to stand out and grab the attention of prospective consumers,” says Leno.
Equally, advertising costs traditionally decline across various channels during a slow economy due to decreased demand. Subsequently, when marketing budgets increase, more ad space can be bought for the same amount of money, amplifying overall brand visibility.
“Boosting marketing efforts during challenging economic times can represent strength and stability. Suppose a business can afford to increase its marketing budget while others are making cuts. In that case, it sends a robust message to the current and prospective customers about the business’s stability in the industry. When the public hears about layoffs at well-known companies, it’s time to push down hard on the marketing gas pedal,” adds Leno.
Periods of economic downturn often heighten consumer loyalty, with customers gravitating towards brands they know, trust, and perceive as safe choices. Enhancing marketing efforts at this time can maintain and increase brand loyalty.
“A slow economy allows businesses to experiment and innovate marketing strategies. During boom times, it’s easy to become complacent with strategies that work. But during a downturn, businesses often need to think more creatively about how to get through to potential customers. Innovative marketing initiatives can attract customers and give a competitive edge despite a slow economy,” says Leno.
While it may seem counter-intuitive, businesses should consider the benefits of upping their marketing ante during a slow economy. Such psychology often leads to seizing market share that remains when the economic slowdown ceases, and business begins to grow again, putting your organization at an advantage.
“Simply increasing the budget isn’t enough. The trick lies in intelligent marketing and not just more marketing. Incorporating cost-effective methods, such as exploiting social media platforms, utilizing search engine optimization (SEO) techniques, and content marketing, can lead to big wins. Balancing bold moves and wise decisions is vital, as well as taking calculated risks and ensuring every dollar spent turns into a savvy investment to bring in a substantial return,” comments Leno.
Companies should remember that the business landscape following an economic downturn can differ. Those that are noticeable, attractive, and strong can lead the path in a recovering economy, and a well-executed marketing strategy during the downturn can be a vital part of that survival package.
Teresa Leno worked as a financial advisor and experienced firsthand the importance of financial education to help clients make more informed decisions before a crisis. Through her experience, Fresh Finance was started as a financial content marketing solution to help advisors validate their expertise through sharing content.