Leaping Ahead of Competitors in Tough Economic Times

Knowledge@Wharton re-affirms the notion that taking a bold, aggressive approach during an economic downturn could pay off big time for companies who continue aggressively marketing while their competitors cut their advertising budgets:

Research shows that companies that consistently advertise even during recessions perform better in the long run. A McGraw-Hill Research study looking at 600 companies from 1980 to 1985 found that those businesses which chose to maintain or raise their level of advertising expenditures during the 1981 and 1982 recession had significantly higher sales after the economy recovered. Specifically, companies that advertised aggressively during the recession had sales 256% higher than those that did not continue to advertise.

Everyone from Gold's Gym to financial services marketers have had to revise their message a bit. It is more difficult to appeal to vanity or ego during times such as these. Instead, messages centered on value and practicality seem to ring true and connect with consumers.

However, for premium or luxury brands, there is still an opportunity to market the emotional benefit of escapism. After all, who doesn't need a respite from the constant stream of bad news?

Here at Mythology, we continue to tinker with our own messaging about "building belief in your business." One of our key value propositions is to get more out of your marketing and to focus on marketing ROI. This has certainly helped us connect with new clients as senior executives question what they've been getting from their marketing efforts.

As with all difficult circumstances, it's an opportunity for brands to sharpen themselves and get to the core of their value proposition. It's also an opportunity to devise more clever, low-cost, high-yield customer engagement strategies that will pay off as the economy starts growing again.