COVID-19 has changed life as we know it. The ever-changing situation around the virus has created unstable global and local markets. In a bid to save money and slow the damage, local businesses are reducing their spending, including, unsurprisingly, on marketing.
However, that would be the wrong move in a time like this.
Despite the panic and the “fear” that sets in, marketing is still a valuable investment to have in a down market. Investing in new marketing opportunities can grow your business’ market share and increase brand awareness while taking advantage of a less competitive advertising market.
As you keep reading, you’ll see why marketing in a down market can completely transform your business for the foreseeable future.
Think of Marketing as an Investment to Grow Your Market Share
Firstly, it is essential to change your mentality during a down market. While most companies tend to think of marketing as an expense, changing your perspective to think of it as an investment instead, can be highly beneficial.
Investing in your marketing campaign, while your competitors are stagnant, means you have significant opportunities to increase your market share. You’ll be the lone voice in a quiet room, and customers will inevitably be drawn to you.
Yes, the total revenue opportunity may be down, but without an overcrowded market battling for space, you can increase your market share. Investing in the heat of a down market will benefit your company as the market rebounds, surging you ahead of your competition. Take, for instance, Pizza Hut and Taco Bell in the 1990-91 recession.
While McDonald’s stopped advertising, Pizza Hut and Taco Bell continued their promotions. The duo saw increased sales with Pizza Hut experiencing a 61% increase, and Taco Bell enjoying a 40% jump. McDonald’s, on the other hand, saw a decline of 28% in sales.
Fast food or not, the idea is the same: while your competitors are rebooting their marketing efforts, you’ll already be ahead of them, increasing your percentage of the market.
Take Advantage of a Less Competitive Market By Investing in Your Digital Presence
A down market also gives you ample opportunity to stretch your marketing budget further. As mentioned above, with a reduction of noise from your competitors, advertising space opens up. And with fewer businesses battling for space, that means the cost of advertising and marketing drops in a recession.
It is, therefore, the right time to take advantage.
You can build and expand your brand’s awareness. Considering that Facebook and Instagram saw a 40%+ increase in usage during the pandemic, your brand has to be there front and centre, capturing the attention of your audience. This is where investing in SEO and social media can grow your online presence during this turbulent time.
If you have a brick & mortar store, now is a great time to consider upgrading your website to include e-commerce capabilities. This will open up new ways of bringing in sales, even in times like now.
According to Quantum Metric, “e-commerce associated with selected ‘Brick and Mortar retailers … saw an average revenue weekly growth rate increase of 52% and an 8.8% increase in conversion rates’ during the last few months.” If your business invests in an e-commerce store, it will likely benefit from an increase in sales, and experience a significant jump when the market resumes.
Even if your store is closed, by investing in new digital avenues, such as e-commerce or SEO, you can still benefit from developing strong relationships with your customers. It also offers excellent opportunities to build your business for the future.
Gain Visibility To Customers by focusing on the ‘Now’
Amidst all the turmoil, your marketing campaign will now have much more visibility in the market due to the reduction in competition. You’ll be able to take advantage of the situation and get your brand in front of consumers.
Doing that requires you to make the best of a bad situation. Adapting to the current climate, and being innovative with your message, means you can still reach consumers during this time.
The likes of pet stores, restaurants, and many other local businesses offer curbside pick-up for their products. Companies like DoorDash are “dropping off” food outside doors. Lawyers, fitness centres, financial groups, and those requiring customer interaction, now do it over the phone or video.
These slight adjustments are just that: slight. But the dividends can be potentially substantial. It will help develop your brand’s image and continue to bring in business during this challenging time.
Don’t Follow The Trend – Buck The Trend.
In summary, it is essential to note the importance and benefits of marketing during a down market. The long-term advantages of increasing your market share and building brand awareness in a less competitive market means you can elevate your business during this time and for the future.
Contact GrowME Marketing if you’re in need of advice, digital marketing help, or for your next marketing campaign! For more information, send an email or give us a call! Local: (403) 547-6963 | Toll Free: 1 (855) 547-6963 | [email protected].