p.14 talking shop 6:FOOTWEAR NEW TEMPLAT 10 08 20/05/2009 12:09 Page 14
TALKING SHOP
Don’t Stop Advertising: It’s Your Lifeblood
M
arketing, more specifically, advertising, is all looked at more toughly during a trade turndown.
about knowing what your customers want, So what should you do to make your money work
tailoring your offering around that need and harder?
communicating the benefits you can offer
them. If you stop telling customers why they should 1 Set objectives more clearly. Whether you are a one
buy from you they will simply stop buying – they’ll product or multi-product company, you need to be
even forget about you. clear what you are trying to achieve with your
Yet despite this, the knee-jerk reaction of marketing budget.
companies is cut advertising, despite the evidence that You need to know precisely which markets you
if anything, now is the time to keep advertising. are targeting, which products you aim to sell in
“It is well documented that brands that increase them and what your marketing message for those
advertising during a recession, when competitors are markets is. This planning process helps focus
cutting back, can improve market share and return on attention on the true opportunities that exist even
investment at lower cost than during good economic in a recession.
times.” So says the Harvard Business School. 2 Measure response. You need to measure the
ADAM BERNSTEIN
And according to The Strategic Planning Institute response from advertising to know whether its
of Cambridge in the US, a recessionary market can providing value for money.
provide an opportunity for businesses to build a 3 Review your existing operations. Make sure
greater share of market through aggressive advertising you've got procedures in place to that sales
without reducing short term profitability. Those enquiries are properly followed through. Many
businesses that reduce media spend suffer a loss of companies waste a proportion of their enquiries
market share. because staff are not geared up to handle them
IT IS WELL
Why is this? The explanation is broadly based on effectively.
what is called ‘share of voice’ (the percentage one 4 Use your existing customers as a marketing
DOCUMENTED THAT
company has of the total amount of advertising tool. One of the truths in sales is that people
directed to a targeted group). In a recession, some who are most likely to buy from you are existing
BRANDS THAT companies reduce their advertising spend, which satisfied customers. You should make sure you
INCREASE ADVERTISING
allows those companies that maintain or increase regularly review who has bought what - and
their spend to steal market share from them. whether they are likely targets for new or extra
DURING A RECESSION,
This has been borne out by a number of studies products.
over the past 85 years in the US. In 1923 a study of 5 If cost is an issue, reduce the size of each advert.
WHEN COMPETITORS
200 companies found that the biggest sales increase In a recession, the frequency of your advert could
were found by those companies who advertised the be more important than its size or length when
ARE CUTTING BACK, most (Roland Vaile). In 1947 a study found that it appears - especially if the ad is response
CAN IMPROVE MARKET
companies cutting advertising spend lost market share orientated.
and continued to lag behind their competitors even 6 Use more direct marketing. These include mail
SHARE AND RETURN ON
after the recession (Buschen Advertising). More shots, telesales and direct response advertisements
recently, in 2002, a study of 3500 US companies - often with coupons and freephone numbers. The
INVESTMENT AT LOWER
found that those who maintain or increase their benefits that made your product good before will
marketing see share increase twice as big as those as still apply in a recession, except that buyers will be
COST THAN DURING those cutting marketing (PIMS). looking at the price tag more critically.
GOOD ECONOMIC
Success in a recession is not just about being ‘brave’ 7 Select media more carefully. Where you do
and continuing to advertise but it also requires that at continue newspaper and magazine advertising,
TIMES.” SO SAYS THE
least some of your competitors are cutting back. Also it pays to take a hard look at the publications
remember that advertising often becomes cheaper due you use. Ask yourself whether they really reach
HARVARD BUSINESS
to reduced demand. the people who are most likely to buy in these
So small businesses shouldn’t assume that tougher times.
SCHOOL customers stop spending during a recession, they 8 Increase point-of-sale advertising. When people are
just tend to buy differently. Businesses need to spending less you need to make sure you get your
adapt their marketing strategy to suit the current message in just before they part with their dwin-
economic climate. There are many managers dling pounds. That means having your message at
slashing ad budgets during this recession who will the point-of-sale. So where appropriate, invest in
live to regret it when trade picks up. Yet it is sales dispensers counter racks and all other in-store
equally true that marketing spend needs to be paraphernalia that can help push your product.
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JUNE/JULY 2009
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