People are scared.
Recessions (OK, economic slow-downs) are scary things. Maybe that's why I have noticed a recent theme emerge from some prominent bloggers - a lot of smart people are discussing risk and stability, and they are discussing the role of failure from a business POV.
This week, I will post a series on these topics, drawing from some of the more knowledgeable online marketers and social media types. This series will focus on the role of marketing during a recession and how to manage risk, stability, and failure. My aim is to embolden you, to reassure you that we're all sharing this anxiety but that there is a path to success.
Recession As Opportunity
Typically, marketing is one of the first departments to see cuts during economic hard times. But cutting marketing, advertising, or PR is one of the only sure ways to lose market share during the recession and then really be screwed during the boom time sure to follow.
Here are some quotes from the experts:
"[H]istorically, PR, Marketing and Advertising budgets are the first to be cut; however, that could be one of the first mistakes a business makes in an economic crisis." -WSJ's MarketWatch
"In a downturn, aggressive PR and Communications strategy is key." -Doug Leone, VC, Sequoia Capital Silicon Alley Insider
"This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times." -John A. Quelch, Professor of Business Administration at Harvard Business School
"Savvy marketers realize that it is because many marketers cut advertising spending during a recession that a recession is the best and least expensive time to gain market share through advertising...It's well-documented how companies leverage downturns in the economy to effectively market themselves. In the 1970s, marketers like Revlon and Philip Morris increased their advertising to gain market share. Today, companies like Procter & Gamble, General Motors, Verizon, News Corp and PepsiCo all increased their first-quarter ad spending." -Joelle Gropper Kaufman, MediaPost
Clearly, marketing during a recession allows you to retain or grow your market share when your competitors are hunkering down. Maintained visibility translates into recognition, familiarity, and, ideally, trust.
Why Online, Why Now?
The role of the marketer has undergone dramatic changes in recent years. Instead of interrupting, we are facilitating two-way conversation. Instead of persuading with subterfuge, we are providing valuable content as a way to get new business.
The online channel is cheaper than other mediums, easier to measure, and only increasing in importance. If you agree with the premise of this first post - that marketing should not be shunted during a recession - then I encourage you to check back for future posts.
I will be posting about the idea of stability during a recession, the role of a marketer in regards to risk management, how failure can be your greatest asset, and why an economic slowdown might push social media tools into the mainstream. Subscribing is an easy way to ensure you are notified when these posts go online.
(Image courtesy of Capture Queen via Flickr)