“Bad economy? Time to get aggressive.”
I read a discussion by that title a couple nights ago, from a chat board in the NetworkedBlogs app in Facebook. The talk was pretty good, though I can’t find it again; that discussion board is a bit spam-happy.
But the writer’s point was similar to the general view in a chat I had just a few weeks ago–in a group discussion on BrightFuse, the start-up job-search network from CareerBuilder.
Here’s what I said there:
Is a “down” market the good or bad time to invest?
It’s the good time, right? Because you are buying stock at a value–when chances are very good that, over time, a general rebound will set you up with a really nice return. Fat ‘n happy!
When a client fears spending a buck on marketing, it’s because they are looking only at the “advertising” dollar spent and not at the projected gains in Brand Equity and profit after cost per target response. But in the stock market comparison, there is one more thing that should LEAP out and make your client hunger to invest all he can in a strong marketing campaign…
It’s about Market Share at a value.
In a down economy, many biz owners pull in the guns and just coast on the customer base they already have. May not sink your ship, but it sure won’t grow your crew. Meanwhile, your client can invest in reaching out, making appeals and offers, testing brokered lists or value-added promotions, etc. This is “Scientific Advertising,” not just flinging money at billboards and magazines, hoping something will stick. That’s the power of data-driven marketing.
The company that invests NOW gains market share at a value, and on the “recovery” side of this slump… stands out way above his competitors–who reeled it in, just to ride it out.
Anyway. So, “Why listen to Ken on this?” I can hear you say. No big reason, I admit. I’m just a copywriter. But I am excited to find that this discussion is happening all over the web, and it seems (mostly) that experienced marketers say the same thing.
For example: I follow (in NetworkedBlogs) a really sharp blogger who had his own input on this recently. Be sure to play the SlideShare presentation in this post:
Don’t feel like bouncing, or watching video? Let me tease you with a couple highlights…
“Brands that INCREASE advertising during a recession, when competitors are cutting back, can IMPROVE MARKET SHARE and ROI (return on investment) at LOWER COST than during a strong economy.”
Prof. John Quelch
Harvard Business School
“Four years after a recession: Businesses which had maintained or increased advertising spending during the recession SOLD 265% MORE than those which cut back.”
Prof. Andrew J. Razeghi
Kellogg School of Management
Vindicated! Today, I feel a little smarter than usual.
Take that… smart people!