Like any other aspect of a business, marketing requires a steady infusion of cash. This means that you must consider every part of your marketing campaigns carefully.
This is especially true given the current economic downturn.
Everyone wants to make wise financial decisions during these difficult times. With any luck, this will lead to more conversions and, ultimately, more sales from your marketing efforts.
Fortunately, the experts at our digital marketing agency in Nashville have compiled a list of marketing blunders to avoid during this economic downturn.
Let's get right to work.
In this world, nothing is permanent except for one thing: change. This holds true for your marketing strategy as well.
But why do you need to change or update your marketing strategy?
There are three major potential reasons:
In the event of an economic downturn, all three of these things could occur at the same time. As a result, it is critical that you change or update your marketing strategies as soon as possible.
According to Wrike's marketing project management guide, business owners should evaluate and adjust their approach to marketing at least once every three months. This is because quarterly reviews allow your marketing team to pivot quickly if they discover that a specific aspect of the plan is underperforming.
Nevertheless, how frequently your marketing plan is reviewed depends on the requirements of your marketing department and the number of campaigns scheduled for the year.
Our digital marketing agency in Nashville always tells clients, "If you sell to everyone, you sell to no one."
In tough economic times, knowing your customer base inside and out can be crucial when deciding what to sell.
To determine what you should sell during the recession and avoid these common business targeting mistakes, consider asking yourself the following questions:
Once you've answered all these questions, you can evaluate whether your proposed offerings have a chance of success in the marketplace.
Pro Tip: During the recession, you can either change or keep the product or service you provide to your customers. However, you should have a deeper reason for why your marketing strategies will be beneficial.
Most people assume that when times are tough, there are no ways to succeed. That said, there are many instances which disprove that idea.
Take Zoom Video Communications as an example. The software firm that saw an opportunity during the pandemic and jumped on it.
As physical workplaces were rendered unusable by the pandemic, many organizations and sectors shifted to a "work from home" model. Companies and workers in the WFH model used many different communication channels, including Zoom.
Zoom offered its paid features for free to schools to gain a larger share of the educational market. Most of these users have remained in the app after the lockdown began, proving that this marketing strategy was successful.
Now, about 55% of the videoconferencing software market is controlled by Zoom.
Pro Tip: In times of recession, don't give up on what your company can still do, and keep an eye on changing market dynamics and client behavior. Our Nashville digital marketing experts believe that if you can still see progress, even if it is small and slow, you should keep going.
Generally, when profits and sales are expected to drop, the first decision is to reduce spending on variable costs. This is done to conform to the expectations of the financial market.
A notable impact of previous recessions was the demonstration of consumers' natural tendency to cut back on spending when times are tough. As a result, spending cuts are a common strategy.
In fact, ad spending fell by 13% during the Great Recession of 2008. However, this is a decision that will not yield the best results.
One argument against cutting back on spending during a recession is the risk of being less competitive.
Numerous studies have shown that, despite the slowdown, it is best to keep up with marketing efforts and, in many cases, even increase spending to maximize long-term returns.
Remember that from a business standpoint, advertising costs go down as the demand does, allowing businesses to advertise more for less with the decreased competition.
Pro Tip: Marketing loudly while the competition is quiet creates the ideal environment for long-term growth moves. Companies that maintain or double their marketing budgets come out stronger on the other side, creating an influx of opportunities to edge out competitors and make real strides in the market.
One effect of the recession is a change in consumer spending habits, which affects the services our Nashville digital marketing agency offers to increase conversions.
While lowering prices may be tempting during economic downturns, it is not always necessary. It's possible that you'll need to run promotional events. Alternatively, you could offer discounts on fewer units or sell your product in smaller packaging.
Brands can survive and thrive with this approach because it allows customers to see their value even when times are tough.
Pro Tip: If you lower your prices, you risk having a slim profit margin. Only if you consistently deliver on your brand promise will customers come back. Eventually, your company's sales and profits will rise if you can keep that up.
We understand if you are already concerned about the state of your business after reading about the marketing mistakes you should avoid during the recession.
But trust us when we say that if you choose Digital Resource as your marketing agency to assist you in developing a recession-proof marketing strategy, you will be in good hands.
Our Nashville digital marketing agency has helped several businesses and companies in both good and bad economic times. This is all made possible by our commitment to providing excellent results.
Contact us today to learn more about our services!