The UK economy is currently on the decline.
What I have been asked a lot in recent weeks is: How essential is it to maintain a Marketing budget during financially challenging times? I always answer the same: Very.
When economic conditions become challenging, many businesses instinctively look for areas to cut costs – and marketing budgets are often the first to face reductions. Whilst it may seem like a good idea at the time to scale back on marketing expenditures, doing so can have long-term consequences on both business operations, market share, and brand awareness.
The first impact businesses face when reducing their marketing spend is a reduction in their visibility and brand awareness amongst their target audience. Out of sight often means out of mind, especially when competitors continue to market aggressively. During the 2008 recession, companies like Procter & Gamble and Coca-Cola increased their marketing spend while others cut back. As a result, they emerged stronger, capturing greater market share once the economy improved.
Consistent marketing efforts, campaigns, press engagement, and community management keeps your brand at the forefront of consumers’ mind, ensuring that when spending rebounds, your business or organisation remains a top choice.
When competitors begin to slash their own marketing budgets, whilst you maintain yours (and potentially even increase it!), you create the opportunity to capture more market share. With less noise in the market, your messages can reach audiences more effectively, without disruption. A study by McGraw-Hill found that companies who maintained or increased their marketing during the 1981-82 recession saw 256% higher sales growth than those that cut back. So, sometimes in life and business, you have to spend money to make money!
Brand visibility and market share are not the only important factors to consider when maintaining your marketing costs – the most important factor at the heart of any marketing strategy, is of course, your customers. During hard times consumers seek reliability and reassurance. Businesses that continue to engage with their audience and provide value-driven messaging build stronger relationships. Consistent communication helps reinforce trust and shows customers that your brand is reliable, even in uncertain conditions.
*Ensure to focus on empathetic and customerfocused messaging that resonates with current consumer concerns. Demonstrating how your product or service can genuinely help during tough times fosters loyalty – who doesn’t want to buy from a brand or business that understands what people are feeling and aligns their messaging likewise?
While it may be tempting to cut marketing budgets during financially difficult times, doing so can be detrimental to longterm success. Maintaining or increasing marketing efforts helps preserve brand awareness, capture market share, build customer trust, and position your business for future growth. Businesses that stay proactive and innovative in their marketing strategies during downturns are more likely to emerge stronger and more competitive when economic conditions improve.
In challenging times, resilience and strategic investment in marketing can be the differentiators that set your business apart and drive lasting success.
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