In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business firms that maintained or increased their promotion expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased promoting. By 1985, sales of companies that were aggressive in promoting during the recession had risen 256% over those that didn’t keep up their promoting.
In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that promotion aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.
Case Study: Kelloggs vs. Post during Depression*
Advertising dollars spent during slow times are the best investment a company can make. In 1929, rival cereal makers Kellogg’s and Post were in a close race to win the breakfast cereal market. When the Great Depression started, Kellogg’s maintained their advertising spending while rival Post cut back.
At the end of the Depression, Kellogg’s had achieved a category dominance that they maintain to this day.
Your ad dollars work harder in slow times. If your competition is less active, this is a time to steal market share and share of voice.
Just because your customers are not buying at recent levels does not mean they have stopped reading, thinking, or formulating opinions about the companies and brands they buy from.
The best thing you can do to help your competition is NOTHING
I recently attended a webinar and heard this: “Your competitors’ dream come true is that you are marketing yourself the same way you did before, biding your time until things get better.” To be successful, you need to change the way you market your brand to your customer. Using promotional products, a highly visible form of advertising, is a very effective way to keep your business top of mind for current and potential customers.
Promotional Products are Valuable, Useful and Unique
Contact your Bankers Advertising Company Promotional Products Counselor today for ideas and suggestions to make your next marketing campaign a success.
*Used with permission from Josh Gordon
Written by Erica Kelley-Gogel | CAS- Bankers Advertising Company | Vice President of Sales