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Advertising in a Down Economy

Does it pay to advertise into a down market?. In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that firms that maintained or increased their advertising 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 advertising. .

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Advertising in a Down Economy

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    1. Advertising in a Down Economy Prepared for the

    3. Yes, it pays By 1985, sales of companies that were Aggressive Recession Advertisers had risen 256% over those that didn't keep up their advertising.

    4. NY Times Article, Jan 28, 2008 “Many marketers spend the same — or even more — during hard times as they do during booms, on the theory that they must make sure to be remembered by any consumers who are still shopping. And advertisers in competitive categories like automobiles, beer or fast food are reluctant to cut spending if their rivals are not.”

    5. What can an advertiser do? They can address their customers’ concerns about the economy. A campaign for Sammies, a new sandwich line at Quiznos, stresses the low price ($2 each) as much as the low calorie count (200 to 300 each). “Uncertain times call for a very certain rate,” assert advertisements for North Fork Bank, part of Capital One, offering a seven-month certificate of deposit at 4.25 percent.

    6. What can an advertiser do? They can address their customers’ concerns about the economy. Nissan is pitching the fuel economy of its 2008 Altima sedan, rather than style or performance, with commercials devoted to its ability to go more than 600 miles between fill-ups.

    7. What can an advertiser do? Some local examples Compass Airlines: building name recognition HOM Furniture: gaining market share Little Caesar’s: expanding; leveraging their product ($5 pizzas) P & G: selling value KHovnanian Homes: gaining market share Morrelli’s: deep discounts

    8. Recommended business strategies for you: Advertising in a recession Plan for the future … the economy will recover. Since 1854, there have been 28 recessions, or one every four to five years. Over the past half century, the average recession has lasted 11 months.

    9. Recommended business strategies for you: Advertising in a recession Concentrate on core values: Reinforce brand values by demonstrating strong consistency of message. What are your core values/brand strategy? How well does your target market know your core values right now? How are you branding now? What do you need to do differently to adjust to the current market conditions?

    10. Recommended business strategies for you: Advertising in a recession Maintain or increase spending and share of voice: The data clearly validates the connection between increased spending and increased market share. What is your market share compared to where they want it to be? What are you doing to maintain or increase market share in the current market? How hard will that be to achieve?

    11. Recommended business strategies for you: Advertising in a recession Start sponsoring: Events, cross-promotions, cause marketing ... anywhere the brand message can be spread. What other advertisers might want to reach the same people as you?

    12. Recommended business strategies for you: Advertising in a recession Adjust your product mix and messages to reinforce their value during tough economic times. What products could you offer right now that would appeal to the current price conscious market? What products or services are your competitors cutting back on that you could use to create value for your business? What new product innovations are you introducing?

    13. The benefits of consistent, customer focused advertising: what’s in it for you? Maintains confidence among your current customers that you’ll be there when they are ready to buy. Maintaining market identity costs less than rebuilding it later on. Prevents you from losing customers to your more aggressive competitors. Allows you to steal market share from those competitors who have cut back.

    14. The benefits of consistent, customer focused advertising: what’s in it for you? Keeps your call to action in front of the consumer when they are ready to buy. Positions your business for the economic recovery.

    15. The Pioneer Press: the dominant east metro newspaper has been delivering results for advertisers thru all 28 recessions

    16. The Pioneer Press: getting better everyday The Pioneer Press was the 4th fastest growing Sunday paper among the country’s top 50 newspapers

    17. Co-op Advertising Funds: What are they? How can you use them?

    18. Co-op Advertising Funds: How can the Pioneer Press help? We’ll handle the whole process for you! Researching what co-op dollars are available to you Putting together a marketing plan that will utilize those dollars to your advantage Create spec ads for you that meet the manufacturers’ requirements Preparing and submitting claim documents (including tear sheets and pre-invoices!)

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