Like any other aspect of a business, marketing requires a clear plan. That means you have to carefully consider every part of your marketing campaign. This is especially true with the current economic downturn. Everyone wants to make wise financial decisions during these difficult times. With luck, this will lead to more conversions and ultimately more revenue. Here are 4 marketing mistakes that businesses need to avoid during the current economic downturn.
1. Do not change or update your marketing strategy
Nothing is permanent in this world, and the same goes for your marketing strategy. But why do you need to change or update your marketing strategy?
There are three main potential reasons:
- Your business goals have changed.
- Your customers want variety.
- Your competitors are also updating
In the case of an economic downturn, all three of these things can happen at the same time. Therefore, you must change or update your marketing strategies as soon as possible. Business owners should evaluate and adjust their marketing approach at least every three months. This allows your marketing team to pivot quickly should they discover that a particular aspect of the plan is underperforming.
2. Don’t know what you’re selling to customers
During tough economic times, understanding your customer base inside and out is crucial when deciding what to sell. To determine what you should sell during a recession and avoid these common business targeting mistakes, consider asking yourself the following questions:
- What is your product or service capable of doing for your customers?
- Does your product save customers time?
- Does your product solve a problem customers are having?
Once you’ve answered all of these questions, you can assess whether your services or products have a good chance of succeeding in the marketplace. During a recession, you can change or keep the product or service you offer your customers. However, you should have a deeper reason why your marketing strategies will be beneficial.
3. Cut instead of reduce
In general, when profits and projected revenue decline, the first decision is to reduce spending on variable costs. This is done to match financial market expectations.
One notable effect of previous recessions represents the natural tendency of consumers to cut spending when times are tough. Ad spending fell 13% during the 2008 Great Recession. However, this is a decision that won’t yield the best results. Numerous studies have shown that, despite the economic slowdown, it’s best to keep your marketing efforts going and, in many cases, even increase spending to maximize long-term profits. Aggressive marketing while competing creates the ideal environment for long-term growth steps. On the other hand, companies that maintain or double their marketing budgets will become stronger, creating countless opportunities to surpass their competitors and make real strides in the market.
4. Don’t Adjust Price Tactics
One effect of an economic downturn is a change in consumer spending habits. While discounts can be attractive during an economic downturn, it’s not always necessary. Brands can survive and thrive with this approach because they allow customers to see their value even when times are tough. If you lower the price, you risk a low-profit margin. Only when you consistently deliver on your brand promise will customers return? Ultimately, your company’s sales and profits will increase if you can sustain them.