building brand equity in a “not so stellar” economy

Has your brand seen its shadow too, in today's market?
As you pull the purse strings tighter and cinch the belt another notch, typically, one of the first areas to cut costs is marketing – and for good reason – most marketing efforts do not show a direct return on investment. However, the savvy companies see a downturn as a means to take leadership roles and build stronger brands. Craig Pearce gives some good reasons to keep moving forward on the marketing front in his article, “The value of marketing in an economic downturn."

1. Studies have shown that an increase in marketing spent during a downturn increases market share in both B2B and B2C sectors.
2. B2B companies that maintain or increase marketing spent in an economic downturn achieve higher growth both during the downturn and for three years after. Conversely, companies that cut spending take longer to return to their pre-downturn market share.
3. As competitors weaken their marketing focus, it is an excellent time to pick up disenfranchised customers and deliver a knockout blow to your rivals, whilst strengthening your influence on key stakeholders.
4. An organization’s brand equity needs to be continually invigorated. Communicating about your organization – its values and its work – is an important way of doing this.
5. Creativity will give you more of an edge than in “normal” times.
6. Current organizational stakeholders need to have their belief in, and loyalty to, you reaffirmed. This is an excellent time to enhance existing relationships.
7. Being positive helps keep and make new friends. Proactive marketing is an example of being positive in a tough environment.

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