Marketing Might in Economic Downturn | Idea Toasters

3 min readSep 22, 2020

As the world is enveloped in the COVID-19 crisis and even the mightiest economies are spinning, businesses are grappling to breathe. The bottom lines have taken an unprecedented hit and only compressed costs can guarantee a decent income statement for the companies. In such testing times, one of the most convenient unit at disposal is the marketing function. The debate over marketing being a cost or a profit center is a never-ending saga. But since the old school thinking still roots deep in management philosophies, the so-called “cost centers” have already bid adieu in the first round of layoffs for some of the biggest brands.

The case worsened when one of the largest Transport Network Companies (TNCs) in the world laid off 400 employees from its 1200 global marketing team alone. When the future is uncertain it is a common reflex to cut down the marketing budgets and if need be let go of the cost centers, but is the business mathematics that simple? How far can a company go with this short-sightedness? The pandemic is not going to be forever but your brand will. Then is the compromise on marketing your brand a sane move?

This might give way for another heated debate, but here are a few points to ponder on before underestimating the power of marketing:

Use that extra space to shine brighter

With the advent of the digital space, marketers have a tough time making a place for their brands. Thanks to the convenience and low costs associated with online marketing, every brand is fighting to have a slice of the pie. When the markets become tight, so do the online ad budgets and this results in less noise on popular advertising platforms. This can be the best time to grab those eyeballs if you continue investing in the online ad campaigns and it can help your brand get the much-needed limelight.

Leverage brand loyalty

To reduce the impact of an economic downturn, it is important to leverage your loyal customers. Continuing to market your product or service in such times notifies the customers who trust you that you are doing fine and by all means are in a position to cater to their needs. Also, a loyal customer leads to brand advocacy, which can in turn get you new customers. This will ensure continued revenue for your business.

Monitor changes

Recessions and economic instability are recurring phenomena and hence understanding and documenting the changes that occur in the buying behaviour of your customers will keep you geared for the next economic downturn. Also studying the ROI of your marketing spends will give you insights on what works and what doesn’t in the testing times.

Stay relevant

A brand’s goal is to stay relevant even when times change. Just fixing a great positioning for your brand is never enough; keeping the brand relevant to the customers each day is equally important. In general, any economic downturn can alter customer behaviour to a great extent. Such times demand a company to understand the changing trends and adjust the brand tone of voice, choice of slang, and the overall brand persona to ensure brand recall. Constant, real-time engagement with your customers on a regular basis is a key to brand relevancy which shouldn’t be overlooked in today’s fast-changing world.

Construct a comeback

Out of sight is out of mind and that is even true with the customers who love you. So you don’t want to miss the customers’ sight by lessening your overall marketing efforts. If you desire to make a strong comeback and not suffer the aftermath of an economic slowdown, you should be out there, active, and telling the world that your brand exists, even during the blues.

The takeaway

At the end of the day having a healthy business is the ultimate goal of companies and the board’s efforts to achieve it are usually justified. But before you get tempted to give your verdict on who leaves and who stays, make sure you are thinking long term.

When all is said and done nobody wants to damage a brand and ultimately the entire business tomorrow, just for some extra pennies today.

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Originally published at https://ideatoasters.com on September 22, 2020.