Marketing During A Recession: Why it Matters

We have all seen it and it is likely that most of our businesses have felt it. With inflation increasing at the fastest pace in more than 40 years, many are predicting that a recession in 2023 is inevitable. As a result, many businesses across the country are having to reduce job roles and cut budgets as they see fit in order to stay afloat. Historically, one of the more common reactions for businesses that are trying to survive a recession has been to cut advertising expenses. But is this really the best way to protect your business from going under?
In times of economic uncertainty, many business owners may ask themselves, “Can we afford to keep advertising?” However, digital marketing professionals will agree that the real question you should be asking yourself is, “Can your business afford to stop advertising?”
The Cost of Cutting Out Advertising  
During an economic decline, consumers often spend less which in return, causes many businesses to reap less. While eliminating advertising dollars may sound like a smart and immediate way to save money during these unpredictable times, businesses must be willing to see the greater picture – which consists of long-term ROI and a competitive position in the market. 
One of the greatest examples of this occurred in the late 1920s during The Great Depression when two companies – Kellogg and Post – were the market leaders for packaged cereal. When the economy took a significant downturn, Post pulled back on its marketing efforts while Kellogg took their advertising to the next level by utilizing radio spend and even launching new products. By taking the risk, Kellogg’s profits flourished greatly and put them on top as the #1 market leader in their industry for years.
The Right Strategy Will Get You Results 
Even though rising inflation may seem like an impossible obstacle to overcome, it also opens up the field of marketing and allows companies to attract more business by continuing to utilize various advertising strategies. However, it is also important to keep in mind that every business must be ready to evolve in ways that align with the current market. 
Back in 2020 when the COVID-19 pandemic first hit, businesses across the country were left with no choice but to adapt with the times. The same goes for times of economic uncertainty. Adjusting your business model, examining the changing needs of your target market and updating your marketing strategies are all necessary efforts to ensure ongoing brand awareness and customer reach. 
Beson4 Helps Businesses Stay Relevant with Digital Marketing 
In times like these, it is more important than ever for businesses to think critically rather than reactively. Do not be quick to believe that marketing and advertising spending is the easiest way to cut costs for your business. At Beson4, our team of digital marketing professionals are here to help your business thrive by providing top-notch services that have proven to drive results. Let’s get started!