As pubs and restaurants reopened on 4th July and the non-essential shops are open for business, there is a feeling of returning to normal. Boris Johnson has called for moves away from austerity and he is absolutely right but why is that important to SMEs?
It is time to spend - you have to speculate to accumulate
But where’s the proof??
It's time to look back at previous recessions to show how those who invest in their brands perform so much better than those who don’t. Brand Z are the top 100 brands by value globally. Who are in the top 5? Amazon, Apple, Microsoft, Google and Visa.
"CUTTING BACK ON ADVERTISING CAN HURT SALES"
In 2008/9 which was the last recession, Brand Z Strong brands value declined just like everyone else but look what happened as they pulled out of the recession, the growth consistently outperformed the US stock market by 40%!! And they were investing like crazy!
Gerard J. Tellis* published a meta-analysis of all the academic research that has been undertaken in 2009. And here are his findings
“Seven empirical studies analyzed the effect of firm advertising on sales or market share. A review of these empirical studies suggests that there is strong and consistent evidence that cutting back on advertising during a recession can hurt sales during and after the recession, without generating any substantial increase in profits. Such cutbacks can result in a loss in capitalization. On the other hand, not cutting back on advertising during a recession could increase sales during and after the recession. Moreover, firms that increased advertising during a recession experienced higher sales, market share, or earnings during or after the recession. Most of the studies consistently showed that the strategy adopted for advertising during a recession had effects that persisted for several years after the recession”.
And those findings have been replicated since the 2008 recession and just in case you are wondering, I read yesterday that we could be entering the worst recession for 300 years!!
So how do you become one of those brands that delivers the marketing needed to make this happen? Its back to basics! Take 4 steps to build your marketing plan
5 STEPS TO BUILD YOUR MARKETING PLAN
- Where are you now – what marketing have you done so far – what worked what didn’t?
- \What do your current customers think Push chocolate have just completed a very insightful survey of their customers and non customers to find out what they love about the brand and are using that now to review their messages
- Who are you targeting? Has your customer base changed? Probably not, but HOW they access brands may well have done so you might need to think differently. Dee Mapasure of K’s Wors sausages is really struggling with Ocado at the moment as her new potential customers have been unable to buy online with them as they are also new to Ocado and Ocado were closed to new customers. So she has set up a whole new DTC channel and marketing accordingly.
- What is the best way to reach those customers- time to write a new marketing plan to maximise exposure, raise awareness and trial and get current customers to buy more, more often
- What are the numbers – what are your sales targets and therefore what will you need to invest to achieve those sales?
Set Your Marketing Budget
Once you are clear on this then you can set the marketing budget
And before you have yet another sleepless night wondering where you are going to find the money……I have your back. I have written a mini guide to 13 ways to find funding plus a guide to all the info you are going to need to make the best applications. So download here - https://bit.ly/funding-ebook
If you need any help feel free to get in touch firstname.lastname@example.org
* A Critical Review and Synthesis of Research on Advertising in a Recession Article in Journal of Advertising Research · April 2009