Dealing with economic fluctuations can be one of the most challenging aspects of business ownership. Despite the complexities brought on by uncertain economic conditions, there are also exciting opportunities to grow and outpace your competition. Let’s take a look:
▶ LESS NOISE. MORE VISIBILITY.
Advertising is usually one of the first expenses that local businesses reduce during changing market conditions, but is that a rushed or smart decision? It’s been shown that ad spending across many media types goes down when budgets tighten, whether it be newspapers, social media, radio or television.1 This trend creates an incredible opportunity for you to saturate the market when your competitors are nowhere to be seen. Try maintaining, or even increasing, your advertising efforts during challenging economic times. There will be ample opportunities for growth and very little noise to overcome.
▶ IMPACTFUL MESSAGING
Your messaging becomes even more important with less competition in the picture. You’ll have a chance to truly capture the hearts and minds of the community through your marketing channels. Find a way to stand out and let your customers know that you’ll be prepared to help them when they’re ready. Focus on building loyalty and brand recognition and watch how it impacts your business in the long run.
▶ THE MCDONALD’S EXAMPLE
A great example of why you should never stop advertising can be found in the fast food scene. During the 1990-1991 recession, McDonald’s cut their advertising budget while Taco Bell and Pizza Hut did the opposite. The result would have McDonald’s executives regretting their decision as they witnessed a sales decrease of roughly 28%. Meanwhile, Taco Bell sales increased by 40% and Pizza Hut saw an amazing 60% sales increase during those times.2 Over 30 years later, this fascinating example continues to show just how important it is to be visible – regardless of uncertain economic forecasts.
By Jo Peek, Expert Contributor
