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Marketing During Challenging Times

As the whole world continues to deal with the impact of the coronavirus pandemic, businesses are cutting back on their expenses to stretch their funds for as long as possible. Many businesses have to shutdown temporarily while others have reduced their investments in advertising and marketing because customers are struggling to make ends meet. 

Should businesses reduce their marketing budgets? 

Instead of reducing the marketing spend, businesses must step up on their marketing efforts. It has been proven now and again that businesses that continue to advertise during an economic downturn recover quickly once the economy recovers. 

According to an advertising study conducted during and after the recession in 1999 on 1,000 US and European firms, a group reduced their advertising and marketing budget during the difficult times while another group opted to maintain their marketing expenditures. Surprisingly, a third group increased their marketing spend and maintained their marketing efforts. 

When the economy showed signs of recovery, the group that reduced their marketing efforts saw a 0.8% drop in their market share. The group that maintained marketing and advertising efforts at pre-crisis levels increased its market share by 0.6%. Companies in the third group that increased their marketing expenditures during the economic crisis saw an increase of 4.3% in the market share. 

There are few opportunities for growth during a crisis but an increase in marketing and advertising efforts will position the brand in the consumer’s minds. When a consumer needs to purchase a product or engage a service, the first thing that comes to mind is the brand that continued to advertise in times of hardship. 

Businesses have to maintain their position in the consumer’s mind because it provides them with a feeling of normalcy during turbulent times. Consumers will think that the business is more reliable compared to the competitor that opted to stop or reduce their marketing efforts. 

Marketing strategies during a crisis

When consumers are facing financial difficulties brought about by an economic crisis, it is important for marketers to consider their emotional state and demographics. Consumers can be segmented according to their psychological states like frightened and vulnerable customers, cautiously optimistic customers, reasonably well-off customers, and customers that are unconcerned with economic downturns. 

For customers who feel economically vulnerable, businesses must use advertising that will focus on being able to help. Customers that are cautiously optimistic must be provided with a positive outlook. They still window-shop online and research for good products which they will purchase when things return to normal. 

Reasonably well-off customers are secure about their finances and spend more time searching for good offers. They are similar to no-worry customers who do not change their level of consumption because they have the ability to purchase during the economic downturn. 

Most of the biggest brands in the world that worked with Golden Marketing were able to grow their business online. By implementing the right marketing strategies, businesses were given the necessary exposure to dominate rankings in Google. Traffic to the website certainly matters but what is more important is turning traffic to conversions.