Every year, Business Week publishes an issue with what they deem as the "Best Global Brands." Along with the list, they post an article that sums up the latest trends and talk around brand marketing. Not too surprisingly, the topic covered recently was "spending into the teeth of a recession." Given the events on Wall Street last week, this is something that is on every business person's mind. "Do I continue to advertise and market my services and products with the current economic situation?"
That's a valid question. Typically, a company's budget is determined by projected gross sales for the year. Your marketing budget should be 3%-7% of your projected gross revenue. But when the stock market takes a nose dive unlike one seen in decades and the credit market is tightening, are all bets off?
The answer is no and here's why. First, if you don't keep communicating your brand message - what makes you different than the competition - you run the risk of either being forgotten about or thought of as a commodity. Brands like Huggies diapers and Scott toilet paper know the danger of pulling back on marketing in tough times. People still buy these products no matter what sort of hit their 401k just took but when the checkbook is tight, consumers might choose the cheaper store-brand alternatives.
Kimberly-Clark (owner of these two brands) CEO Tom Falk says they are forging a more personal connection with consumers through online and TV brand marketing. "The worst thing you can do is pull in your brand-building spending and become more of a commodity."
Mark Baynes, Kellogg's CMO, agrees and says his brand is more than just "flakes in a box." "We believe it's critical, when the economy gets tougher, that people should be seeing the value of our brands constantly."
The second reason to keep up your brand marketing is that your target audience is still listening but for different reasons. When a recession hits, the customer set doesn't change but what is motivating their purchasing decisions does. Tweak your brand message to speak to how they are thinking, feeling and most importantly, buying. According to Business Week, "the consumer you thought you knew, pre-recession, can be almost unrecognizable. When times get tough, people reexamine old habits and brand loyalties. Their tastes shift dramatically as they cut back."
"The rate of change can be phenomenal," John Haynes, CMO at American Express. "In the past year alone, consumers have far more negative perceptions of debt and spending on themselves."
Take a look at the components of your brand and why your target audience is in tune with you. Then ask yourself, are any of these attributes more important now with the poor economy than they were just a few months ago?
If you are a B2B biz, perhaps the most important brand tenant now is the value you bring and the operational cost-savings your brand provides. If your target audience is consumer based, maybe you combine a promotional or coupon incentive with your current brand message. If you know that the target audience is more inclined to buy when there's a sale or promotion, then continue with the brand advertising but utilize part of the ad space or air time to promote a special offer.
Marketing is not an event, it's a process. With the economic landscape changing, so must your strategy and tactics to keep that cash register ringing.
To see "The 100 Top Brands" or to read more about marketing spend in a recession, check out the September 20 issue of Business Week.
Learn how we can build your brand and create buzz for your company at www.create-buzz.com.
Posts
