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    7 Replies Latest reply on Feb 21, 2008 9:38 AM by Iwrite

    Recession - what a great time to advertise.

    Iwrite Pioneer
      What are your marketing/advertising plans if a recession does occur? Will you reduce your marketing/advertising budget or increase it?

      Why am I asking?

      Some of the huge companies I have worked with are taking an interesting slant - they are increasing budgets, getting more aggressive about obtaining and retaining customers. They are preparing for a possible recession by making sure as many people as possible know they are still out here.

      I apologize up front that I am not looking for any one right answer. I'm not sure there is one answer that is right for everyone. I'm just curious.
        • Re: Recession - what a great time to advertise.
          LUCKIEST Guide
          Recession - what a great time to advertise. RIGHT.
          YES, Some of the huge companies I have worked with are taking an interesting
          slant -
          they are increasing budgets, getting more aggressive about
          obtaining and retaining customers.
          They are preparing for a possible
          recession by making sure as many people as possible
          know they are still
          out here.
          And they will still be around after this recession.
          LUCKIEST
          • Re: Recession - what a great time to advertise.
            Lighthouse24 Ranger

            On the consulting side, the advertising budget will stay the same. On the training side, the advertising budget will increase (already has, actually). We only advertise to companies and individuals who are buying what we sell. Unless a company already outsources training, or an individual already spends money to enhance his/her skills, they're not in our target market.

            A recession usually means massive job losses, so more companies outsource training that is compliance-mandated or designed to build cross-functional skills (we provide both). Likewise, more individuals invest their own money in training seminars, webinars, books, and self-study courses that can quickly develop a new skill and/or provide a recognized credential that makes them a) more valuable to their existing employer, b) more marketable to a future employer, or c) better prepared and qualified to launch a business of their own (and again, we specialize in all those).

            A recent issue of Barron's had an article by a financial guru who listed the top ten things the average person could do to become more recession-proof. "Invest in education" was at the top of his list. A BusinessWeek article placed "Expand your skills" as number three on a similar list. The more the news media talks and writes about a recession, the more people see a compelling need for what we offer (thus expanding our target market), and the more we advertise to try to fulfill that need because it presents the ideal business-customer relationship -- where both parties are better off as a result of the transaction!

            I hope this provides some useful information for you.

            • Re: Recession - what a great time to advertise.
              MKTG.com.au Adventurer
              I couldnt agree more. My clients (big and small) will be encouraged to at least continue the level of their existing marketing spend. Even in tougher times marketing can add value to any brand. I definitely think anyone who cuts their marketing budget will miss out longer term for a short term sacrifice. You can be sure most of your competitors wont be culling marketing.
              1 of 1 people found this helpful
                • Re: Recession - what a great time to advertise.
                  Iwrite Pioneer
                  Welcome to the boards!

                  Australia?! Cool.

                  I am glad someone else said this. It is a lesson better learned ahead of time. Playing catch up with your competitors is always difficult. And it dictates the message you have to use. Look at Southwest Airlines during and after 911, they continued to advertise and re-assure the public that they were working to protect them, and they were the only U.S. carrier to come out of it in a more positive position. There were other factors but even they have contributed part of their success to their marketing and advertising plan.

                  We may not be able to spend like big companies but on our level we should try to mirror the behaviors that work for them - on our level.