Three Ways A Poor Economy Can Create New Opportunities For Marketers

A new Gallup Poll this week reveals dismal consumer confidence in the U.S. economy. Approximately 78 percent of respondents gave the economy a poor or fair ranking, and only 22 percent ranked it good or better. The numbers have been getting steadily worse all month, and I’m sure Wall Street’s recent plunge has played a large part in the growing pessimism.

A CNN Money poll last week showed 48 percent of Americans are cutting back on their spending. Most people naturally assume a recession makes marketing’s job more difficult. In many cases that’s true, but economic downturns can also benefit resilient marketers. Here are three cases in point:

1) Recessions force people to reassess what represents a good value. In more prosperous times, buyers are reluctant to reexamine their brand preferences. However, economic worries or hardships often force consumers and prospects to find out if there is something else out there that will get them all the benefits of their preferred brand at less cost. Recessions can help marketers break down what was previously the formidable wall to considering other options.

2) During tough times, many companies go into head-in-the-sand mode. When the going gets tough, some companies are either forced or simply choose to cut back on their marketing efforts. This is often a time when firms who are willing to counterintuitively increase their efforts can see the biggest gains. In most cases, share of mind eventually equates to share of market. If the competition cuts back during a recession, other companies that stay the course or increase budgets can more easily dominate marketing channels and rapidly increase their own brand awareness.

3) Consumers expect to see special incentive offers during a recession, and this is a time smart promoters should be active and creative with ways to pique the interest of reluctant buyers. People know times are tough for companies too, so they will be expecting an “offer they can’t refuse.” Give them one.

Staying aggressive with marketing efforts during an economic slowdown is difficult to sell to top management, but the return on investment for such perseverance could end up being surprisingly more successful than efforts in good times.