Written by the The Melotti Media Team, checked by Christopher Melotti
Prefer to listen, rather than read? Here's the Podcast summary!
There’s a bit of a predictable cycle that occurs whenever businesses face some sort of financial challenge, economic downturn or recession.
Does this sound familiar?
- First, economic conditions tighten, and consumers grow more cautious with their spending.
- Businesses then face declining sales and limited budgets.
- To survive and keep operations running, these businesses embrace a cost-saving strategy.
Guess what's the first thing they tend to cut back on when times get tough? Yes, that's right - marketing!
While this response might personally disappoint us as marketers, we understand that it’s not entirely surprising.
Marketing, after all, has traditionally been viewed as a discretionary expense. Hence, to preserve cash and minimise risks, companies instinctively treat marketing as a lower priority.
But in today’s competitive landscape, marketing is no longer a nice-to-have.
Marketing for Australian businesses is certainly not discretionary any longer (we know this well, firsthand!).
Why, you ask?
Well…
Marketing has evolved into an absolute necessity as customers constantly seek communications, assurance and value from Australian businesses.
Hard truth: if your customers can’t see or remember you, they don’t choose you. So, cutting marketing during tough times usually makes everything worse, not better. Sure, you have to be smarter when there’s a financial pinch – but cutting your marketing budget altogether is akin to madness!
Why is marketing essential even in rough times?
Well, marketing plays a pivotal role in ensuring your brand remains seen, heard and trusted by the right people; and during times of struggle, you need even more of those people seeing you than ever! Especially during periods of economic fluctuations and market uncertainties.
Business marketing connects you with your target audience, allowing you to raise awareness, foster trust, build customer confidence and remain relevant in their lives.
In fact, without marketing, a bad situation can turn to worse
People typically become more cautious with their purchasing decisions when the economy is struggling.
As a result, there’s potentially weaker customer demand, fewer prospects and fewer leads for your business overall.
So, what’s the solution to navigating these rough business challenges?
The answer is obvious – you must become more marketing active to prove that your business is worth choosing, no matter what!
Keep in mind: your customers already have limited spending capacity in economic pinch times. What will motivate them to buy is more guidance and clarity as to why your products and services offer value for their money.
And this is exactly what marketing does!
For more information, listen to this special podcast episode: Navigating a Dynamic Business and Marketing World
So, if you intend to cut your marketing budget, think twice.
Chances are – putting off your marketing initiatives could actually be counterproductive for your business. Let’s explore why.
5 reasons why you should never cut marketing in an economic pinch
1) Loss of Brand Visibility
Marketing enables you to raise brand awareness and maintain your market presence, even when the market is shrinking.
What does this mean for your business during an economic downturn or recession? Simple!
Consistently engaging in marketing sends a powerful signal to your target customers that you are always ready to provide them with the solutions they need.
This strategy keeps your business on your customers’ radar, so you remain top of mind when they are ready to make a purchase.
On the contrary, if you have little-to-zero marketing, you not only risk fading into the background but also driving your ideal prospects towards competitors who ARE marketing.
Have a read of this article: Is Brand Relevancy the New Brand Awareness?
2) Reduced Customer Engagement
Engaging new and existing customers is essential to nurture lasting and profitable relationships.
So, to achieve more conversions and higher returns despite all of the recession talk, it’s crucial to keep your target audience engaged.
However, with fewer marketing initiatives, you might find it challenging to stay in touch with customers, maintain brand relevancy and establish loyalty.
Reduced marketing efforts may even result in customers feeling less connected to your brand – a scenario you certainly want to avoid!
Here are 7 Ways to Increase Your Audience’s Engagement with Your Content Marketing
3) Missed Opportunities for a Sale
Marketing can also equip you with valuable insights about your target customers’ changing needs, interests and preferences.
Armed with this firsthand knowledge, you can identify and capitalise on new opportunities, tailoring your products and services to align with their demands and requirements.
Well, if you think about it, there were lots of innovative solutions that emerged during the COVID pandemic to address customer pain points! This will only continue to grow.
So, what happens if you instead decide to cut back on marketing?
Unfortunately, you may miss out on new opportunities that could generate additional revenue streams and fuel growth for your Australian business.
To learn more, check out this article: 7 Strategies Businesses Can Use to Recession-Proof their Organisation
4) Competitive Disadvantage
You cannot be certain that your competitors will also reduce their marketing efforts as you do.
So, if you pull back while they keep their marketing active, you risk losing potential customers and market share.
Always remember: marketing highlights and communicates the true value of your products and services, while keeping you customer relevant.
So, reducing your marketing initiatives can give rise to doubts and objections about the solutions you offer. And at a time of crisis when customers are already conservative and discerning in their purchasing decisions, these doubts and objections are the last things you want to deal with.
In the end, your goal is to be the brand they consistently hear about when they are looking for the best alternatives.
Need more guidance? Here are 8 Marketing Strategies To Help Businesses Endure Economy Fluctuations
5) Aftermath Recovery Challenges
Building, positioning and strengthening your brand doesn’t happen overnight.
These marketing processes require an investment of time, effort and resources from your team.
So, while cutting marketing today may offer short-term cost savings, it could also lead to long-term business repercussions that prove more expensive for your business.
Additionally, putting your marketing off today might further slow your business’ recovery tomorrow. Just consider these:
- How can you expand your reach and capture more conversions if you have no avenue to reach your prospects and target customers?
- How can your business thrive in the market if you can’t show strength, resilience and consistency, especially during economic uncertainties?
- How can you lead your industry if you don’t provide engaging and valuable marketing information that boosts credibility and trustworthiness?
Without marketing, you simply can’t.
Want to know how to best navigate market uncertainties? Here’s what businesses should prepare now to survive.
It's time to change the narrative that marketing is dispensable during tough economic times
Stop falling into the trap of thinking that marketing is non-essential – something you can easily put on the back burner when faced with economic uncertainties, limited budgets and decreasing demand.
While marketing may not provide immediate upfront cost savings, marketing is a rewarding investment that yields long-term benefits for your Australian business, including:
✔ building brand awareness and recognition
✔ cultivating customer engagement and loyalty
✔ increasing sales and revenue
✔ gaining a distinct advantage
✔ ensuring the sustainability of your business
In fact, research has shown that 60% of brands that increased their media spend during the last recession saw a greater ROI, while those that invested more in paid advertising experienced a 17% increase in incremental sales.
These results just illustrate how investing in marketing can be the difference between Australian business success and failure during an economic pinch.
When effectively optimised, marketing not only helps you overcome economic challenges but also serves as your springboard to thrive in today's highly competitive and dynamic landscape.
For more information, read: Why is Content Marketing Crucial for Businesses?
So, how can your business thrive in adversity using marketing?
Don’t worry, we got you covered!
As your expert team of Outsourced Sydney Copywriters, Message Marketers and Brand Strategists at Melotti Media, we have winning tips to guide you.
- Review your content marketing plan and marketing strategy.
To successfully navigate challenging times, it’s essential to revisit your existing marketing plans and marketing strategies. You must assess what’s still relevant, working and value-adding in today’s tough Australian market conditions.
If necessary, make some adjustments to ensure your marketing aligns with the current needs and expectations of your audience.
Looking for content marketing strategy services? At Melotti Media, we can help you develop an agile, ongoing strategic marketing plan for your roadmap to success.
- Identify your most loyal and profitable customers and tailor your messaging to them.
With a limited marketing budget, you must ensure that you’re getting the most return from your investments.
To maximise conversions, focus on creating Australian marketing content that targets your ideal customers. One thing you can do is communicate clear and personalised messaging that addresses customers’ pain points and caters to their specific interests.
Learn about Retarget Marketing: A New Level of Personalised Content
- Emphasise your brand’s value proposition.
How can you ensure that your ideal customers won’t overlook your business in a tough market?
Lucky for you, this is where effective marketing (through unique brand messaging) can help!
With unique brand messaging, you can clearly communicate the importance of your products and services while highlighting your brand’s value proposition.
By emphasising this value proposition, you not only set your business apart from competitors but you also ensure that your market offerings resonate with your target customers.
- Allocate your budget to more cost-effective marketing.
Marketing doesn’t have to be expensive to be effective.
In fact, you can leverage digital marketing strategies that enable you to reach a broader audience with minimal or (sometimes) even zero cash outlay.
At Melotti Media, we also create engaging and informative marketing content that you can easily repurpose as videos, podcasts and social media posts. This flexibility allows you to cater to different types of people across various channels.
Here are 5 Ways You Can Get More Out of Your Blogs and Leverage Their Full Content Potential
- Invest in strengthening your thought leadership position.
People tend to be more discerning during a recession or challenging economic period.
As such, it’s essential to position your Australian brand as a credible authority and a thought leader that knows how to address customers’ questions and provide solutions to their concerns.
To establish a strong thought leadership, you must pioneer new ideas, offer industry insights and share your in-depth expertise.
Fortunately, there are Thought Leadership Copywriting Services ready to help you become the top-of-mind brand and go-to solution provider that your customers trust and your industry respects.
Curious as to how large Australian companies and small Sydney businesses harness thought leadership to earn more sales? Find out the answer in this podcast!
- Create objection handling content for unsure customers.
During tough economic periods, expect customers to be more hesitant in making buying decisions – and who can blame them?
So, to overcome their objections, create marketing collateral and compelling content that can clear out their confusion and provide them with the exact solution they need.
In this way, you can focus on boosting conversions and driving more sales for your Australian business.
- Apply for industry awards.
Qualifying for an industry award signals that your brand is excellent, respected and reliable.
This reassures your customers, especially during an economic downturn or recession, that your business is worth trusting.
At Melotti Media, we offer Award Submission Copywriting Services to help you gain the recognition you deserve. We empower you to position your Australian brand on the map, opening up more opportunities for recognition, marketing and PR engagement within the market.
Want to achieve success during challenging economic periods in Australia?
Well, who doesn’t want to?!
At Melotti Media, we understand your desire to stand out in the competitive Australian market and achieve business success, even in the face of economic fluctuations or downturns that may impact your business and customers.
However, you may find that you’re time-poor and spread thin or you still have a lot of unanswered questions.
You don’t need to worry.
As your Sydney Copywriters, Message Marketers and Brand Strategists, we can assist you with your recession marketing strategies while you focus on what matters to you – growing your Australian business.
Let’s start earning the results your business deserves! To speak to your trusted message marketers and Australian copywriters, email us at enquire@melottimedia.com.au or phone 1800 663 342.
