A recession is a peculiar thing. No economist can ever accurately predict when one will arrive, how big it will be, or how long it will last. But once it begins everything is affected in an entirely predictable way.
Mark Ritson
Ever an honest voice, Mark Ritson released his ‘Recession Playbook’ in Marketing Week recently. Here are Join the Dots’ top 5 take-outs for the tricky times inevitably ahead…
- Experience. This won’t be the first recession for many marketers, so we should use our experience and learnings to weather the storm and plan for the tricky times ahead. We can’t plan for when the recession hits, but we can be prepared in how we react.
- Growth. Spending through a recession may not impact short term KPI’s and may feel counterintuitive, but studies have shown brands who continued to spend had greater growth when markets started returning to a positive stance.
- Share of Voice. If brands in your category are cutting back spend, and you maintain your spend, your SOV gets a boost. Hold your nerve and benefit from increased cut through for the same cost.
- Targeting. If your traditional audience aren’t spending as they used to, adjust your targeting to find a new, wealthier audience ‘who may well be on the escalator heading down to replace them [previous customer].’
- Pricing. Don’t be tempted to heavily discount or reduce prices temporarily. Short term KPI’s may benefit from discounting or price reductions, but it will impact long term KPI’s including brand health and may impact customer perception and loyalty.
Check out the article by Mark Ritson here on Marketing Week’s website.
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