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Are you ready for an Economic Downturn?

 

Hello, I am Kyle Ean Haggerty, Director of Business Development for INGAGE digital marketing and Public relations, and welcome to your Marketing Moment. 

I am here in Little Rock, Arkansas, having a few strategy meetings with clients. The one thing we discussed was a possible economic downturn in 2023, especially for the legal industry. Here at Ingage, our specialties are Legal, Finance, Government, and Non-Profits; as we have clients in dozens of industries, I would like to review why marketing is crucial during troubled financial times. 

  • First, It is your marketing strategy that brings clients through the door. Marketing is the engine that drives revenue. Would you take a road trip without putting gas in your car? Of course not; you won't go far riding on empty. 
  • Second, you sole practitioners and small business owners may feel compelled to slash your advertising and marketing budget to save money or make payroll; this is understandable. But what about next month's payroll? You have cut the vehicle bringing revenue and customers to your business. 
  • Third, you may want to consider diversification. You can offer various services to your current customers or expand your business model to attract new customers, but no one will know if you cut your marketing budget. 

Despite many signs pointing in the right direction. Examples are inflation receding, continued consumer spending, and dropping unemployment rates; the experts warn that a recession is still likely.

According to the Wall Street Journal's latest quarterly survey, business and academic economists say there is a 61% recession probability within the following year. The predicted likelihood dropped 2% from October but remains historically high. 

The Journal reported that officials at the Federal Reserve are tasked with balancing raising rates too much with not doing enough to slow down spending and investment.

Since the middle of 2022, businesses and workers have continued preparing for the coming economic downturn. 

Large tech firms like Meta and Amazon have facilitated mass layoffs to cut costs and prepare for a difficult financial situation this upcoming year.

Entrepreneurs have begun conducting financial audits on their marketing and advertising to cut costs To their bottom line. Sole practitioners and small business owners must check in on small amounts of money leaking out of their businesses and ensure they're performing matters most efficiently. Sadly when they cut these costs, it compromises their opportunity to attract new business opportunities. 

Financial experts say that despite today's economic fears, now is a valuable time to start considering strategies to maintain the highest advertising and marketing budget. 

When businesses begin to see declines in sales and revenue, expenses are the first thing to be reviewed and cut. Personnel, real estate, overhead, and future investments are all streamlined. And, often, marketing and advertising budgets are the first to be slashed, as they are considered a discretionary cost. 

On the surface, this makes sense. While businesses struggle to keep the lights on and pay their employees, little focus and energy are spent on advertising. During slow economic periods, consumers set conservative spending priorities and often reduce non-essential wants and needs. So why continue to advertise and market your brand? 

Because it is the perfect time to capture attention and increase market share. 

Numerous studies have focused on the short and long-term impacts of advertising and marketing during declining economic conditions. A survey of 600 companies from 16 different industries, some of which maintained or increased their advertising spend, and others who cut or reduced it. 

Their findings were clear and to the point; companies that continued advertising during the recession saw a 256% higher sales increase than their counterparts post-recession. Those who chose not to advertise during the economic slump saw a 0% market share increase and a rise in sales of only 18% once the economy regained traction and leveled out. 

The adage that comes from their findings is:

In times of prosperity, you should advertise. In times of hardship, you must promote. Now is the time to differentiate.  

 

I am confident you want to learn more about weathering the storm of an economic downturn. So please, reach out to us for your complimentary Marketing analysis so we can partner with you toward success. 

I am Kyle Ean Haggerty, and that was your Marketing Moment. 

About INGAGE biz – Digital Marketing & Public Relations 

We are an outsourced marketing department. From public relations to pay-per-click advertising, we are experts in each area of marketing to ensure our clients achieve results at a fraction of the cost of an in-house team. We are equipped to develop successful relationships in all business sectors; we service the high-level business community specializing in law, finance, government, information technology, and higher education. We are a team of passionate, creative, and strategic professionals. Our unique multicultural experiences and professional backgrounds allow us to undertake any marketing challenge. Are you ready to INGAGE? Because we are. We specialize in accelerating our client's momentum, being at the foundation of their vision, differentiating them from the competition, and maximizing their mission. We INGAGE in your success.

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