Companies are understandably concerned about changing economic conditions and are looking for ways to prepare for a potential economic storm. During early signs of an economic downturn, some companies are too quick to hit the panic button and begin making budget cuts, layoffs, and reductions wherever possible. While cutting back in some areas might be necessary during a recession, your PR efforts should be the one thing you exclude from the list of cutbacks.
Recessions are temporary, but the decisions you make for your company are long-lasting and can impact your business for years to come. Companies that tend to fold under fear during a recession can greatly pay for their decisions for a long time after the economy recovers. Often, it is not the economic downturn itself that affects companies the most. It is the results of the company’s choices and inability to take advantage of marketing and PR that really hurts them.
An economic recession is a great opportunity for a company to take action in marketing by maintaining or increasing its overall marketing efforts. History reveals that the companies with the greatest investments in PR and marketing during economic recessions came out on top of those who decided to cut back in this area. A McGraw-Hill study on 600 companies across 16 different industries revealed that those who focused aggressively on marketing during a recession grew by up to 256%.
While your competitors are folding under the pressure of the economic slump, you have a great opportunity to increase your brand awareness and brand presence by staying in the eyes of your prospects. This gives you a chance to tell your story and gain greater recognition for your brand during a time when your competitors chose to stay out of the public eye. Excellent marketing and PR can give you the edge you need above your competitors who choose to reduce their marketing budget.
Continued public relations during a recession let the public know you are still alive and active during the economic storm and that you will still be around when the sun shines again. It is a great opportunity for you to engage with your audience and learn more about them and their needs. Your audience’s increased engagement with your brand will build your trust with them and up your reliability, too.
From the Great Depression of the 1930s to the Great Recession of 2008, history has proven time and time again that aggressive marketing during a recession is beneficial to brands who choose to take action. On the other hand, timidity during a recession is very costly for companies in the long run. Recessions usually do not last very long, but the impact of cutting back on PR and marketing can have a lasting effect on your business. Don’t let your company be the one to face such a detrimental impact. Take action by maintaining or increasing your marketing and PR during an economic downturn and gain an advantage over your competitors.
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