Due to the Coronavirus Disease (Covid-19) pandemic, the world is going to enter a recession this year. Many businesses are shut around the world and many governments are imposing stay-at-home restrictions. As the world continues to grapple with this disease, closed businesses, wearing of face mask in public, skeleton work forces and other changes to our daily lives will become the new normal.
However, due to the business shutdowns and restrictions many consumers will feel poorer and poorer. They will find their buying power shrinking due to unemployment or under employment. Many of them will be tightening their belts due to uncertainty and in order to ride the storm longer.
With this said, is it still practical to keep marketing products during the coming recession? Marketers and businessmen should fasten their seatbelts for a long and difficult 2020 and keep in mind these tips for marketing during a recession.
Research The Customer
Instead of cutting marketing budget all together, companies and businesses should find out how their customers are redefining value and responding to the changes to their lives brought about by the virus.
Due to these changes, customer spending is changing. For example, many of them will be looking into wellness in order to boost their immunity. Many people are also forgoing vacations abroad due to strict travel restrictions and are shifting their spending to making their lives at home easier. Knowing how the customer is behaving due to these changes can help your marketing efforts become more effective.
Focus on Family Values
Many people are spending lockdowns alone or far from their family. Many of them especially with elderly family members cannot visit each other in order to avoid transmitting the disease. Most of all, many people including medical frontliners have lost their lives fighting the virus. All of this has made us aware how important family and friends are.
As hard economic times loom, many of us will be retreating to our communities, families and friends in order to seek comfort. Instead of going for campaigns with the rugged outdoors or enjoying solitude, replace these scenes with homey family scenes to remind customers that they are not alone.
Maintain Marketing Spending
Believe it or not, now is not the time to cut your marketing budget. Many of your competitors will be cutting their marketing budget during the recession. This is well documented which means now is the time to step up your marketing efforts in order to get a bigger market share.
Think about it. Competitors will be dialing down their efforts which mean they will be less visible to your target market. Now is the time to seize the opportunity to get a larger piece of the pie and you can only do this by spending money.
Focus on Existing Customers
Regardless of what you’re selling, your biggest asset is your existing customer base.
Make sure that you are focusing marketing energy on making sure that they are happy, satisfied and engaged. Bend over backwards to keep them loyal to your brand. If these customers are happy and satisfied, they will reward you by recommending your product to friends, family or through reviews.
Adjust Pricing Tactics
Customers will be shopping for the best prices. This is because they want more value now more than ever. You don’t necessarily have to reduce prices but you can offer quantity discounts or even extend credit to long-standing customers.
During recession, price cuts attract more customers compared to promotions like sweepstakes or mail-in offers.
Consumer confidence is going to hit an all-time low. However, there are many studies pointing out the advantages of maintaining or even upping marketing budgets during a recession. Businesses who did this were able to increase sales and market share during the recession and afterwards.