In tough economic times, business owners naturally start looking for ways to cut expenses.
Because marketing budgets often seem so flexible, many owners are tempted to think cutting back on advertising is an easy choice.
But study after study shows, businesses that maintain or even increase their advertising budgets during economic downturns thrive while their penny-pinching competitors suffer.
David Chase, one of the leading thinkers in online advertising, posted an educational piece recently on how businesses that increased marketing during the Great Depression overtook their competitors in market share.
Because so many companies cut spending during the Great Depression era, advertising budgets were largely eliminated in many industries. Not only did spending decline, but some companies actually dropped out of public sight because of short-sighted decisions made about spending money to keep a high profile. Advertising cutbacks caused many customers to feel abandoned. They associated the brands that cut back on advertising with a lack of staying power. This not only drove customers to more aggressive competitors, but it also caused financial mistrust when it came to making additional investments in the no-longer-visible companies.
Both anecdotal and empirical evidence support the case that advertising was the main factor in the growth or downfall of companies during the Great Depression. To put it bluntly, the companies that demonstrated the most growth and that rang up the most sales were those that advertised heavily.
Among the examples Chase cites, Chevy overtaking Ford, Camel Cigarettes regaining top brand position and Proctor and Gamble coming out of the Depression as strong as ever.
Are you just trying to get
Are you just trying to get businesses to advertise on the batavian?
Its not that easy Howard
You have to use advertising in a very careful and planned way
many businesses in this upstate area are on a seasonal basis
you can still advertise during your businesses slow time but it is more beneficial to do the advertising at the time of the year that the consumer is most likely to use your business
not every business has a huge working capital that a lot of bigger companies have(like the ones you listed above)
their is a wrong way and a right way to advertise
yes companies have been a little tight on advertising (like myself)
but you have to be cautious when you use that valuable and expensive tool
about your study that you listed above
not every business is out to overcome their competitors
i love this site Howard but what can be done about everyone bashing everyone and all this anonymous(childish) posting?
Dan Kemp,
Dan, thanks for the
Dan, thanks for the feedback.
Yes, some businesses are seasonal. I don't know the ins and outs of your business, but it seems to be seasonal. But not all businesses are seasonal, and some businesses adjust their products and services to fit the season.
While local companies may not have the marketing budgets of GM or P&G, many of them do have marketing budgets for good local marketing, be it with The Batavian, WBTA, the Daily or the PennySaver. All of these media outlets offer affordable rates for local businesses. It's all a matter of scale, and local media buys fit the local business market.
Yes, I want more businesses to advertise with The Batavian, but I also want local businesses to thrive. That benefits the entire Genesee County economy, and ultimately, that will benefit The Batavian.
I've spoken to a few business owners around town who express concern about the tightening economy and maybe they shouldn't spend money on advertising right now, not just with The Batavian, but anybody. In my view, that's the wrong approach to take. Now is the time to remind customers you still have valuable products and services to offer.
As for the tone of the comments on the site -- it gets a little out of hand some times, but we do take measures to dial it back (we've recently blocked a couple of loud mouths from posting) and in 15 years of doing sites like this, I can say the tone of our conversations tend to be more civil and informative than what you will find on most newspaper web sites. We're always working to keep it as civil as possible, of course.
Very interesting article as
Very interesting article as I was just talking with my fiance this past weekend about sales and marketing.With the economy on the downside and consumers looking to get the most for their hard earned and well taxed dollar. We are thinking people will spend more time researching their major purchases and maybe not going with the "BIG GUYS" just for the sake of getting it done.
I'm finding myself doing online price shopping for everything these days ,from insurances to televisions and beyond.I know I like to spend my money locally on the best deals that are out there. Although after several weeks of pricing out cars,we recently got a new vehicle in Rochester. They were willing to decrease their profits to make the sale. I felt like I was in the position of control and actually had them at the mercy of me ,instead of the other way around
I'm not looking to overcome any of the competition out there with my product. I just think it fair to give the wise consumer a choice and let them decide what fits their needs best
My thoughts on the "tone" of comments here .Well it does make good entertainment,that's the reason we keep coming back. Being a forum here where you can't be anonymous is what makes things so real.
Something to remember is."keep an open mind and your opinions work for you in your particular situation and someone else's opinion is working for them in their situation"
LONG LIVE THE BATAVIAN