Roughly 60% of American Marketing Association (AMA) members revealed that the worst mistake marketers can make during an economic slump is halting or reducing spending on key marketing programs, according to an AMA survey.
Other big mistakes include focusing on short-term tactics and sticking to the status quo, according to AMA member marketers.
Over 65% of survey respondents say the slowing economy is having a significant impact on marketing plans, making it a challenge to:
- Demonstrate the value of marketing in the face of decreasing sales,
- Reorganize marketing tactics to match changing business objectives, and
- Focus on long-term marketing strategy.
After analyzing their survey results, the AMA outlined four strategies to help marketers improve their plans and get through the recession:
- Shape the message, don’t slash the price. Shape your message to highlight the value of your product or service instead of dropping your prices.
- Focus on whom not to target. Refine your target audience and focus on segments that will produce the greatest ROI.
- Stand apart from the crowd and invest in innovation. During times of economic uncertainty, marketers are less likely to take any risks on a new product or service. But, investing in research and development now will put your company in a good position when the market turns around.
- Sustain the brand. “63% of marketers say they can lessen the impact of a downturn by investing in brand building as part of their marketing plan.”