We don’t yet know what the full economic impact of the Covid-19 virus will be. But it’s likely to be far-reaching. Recession (once again) seems inevitable.
And when recession hits, the marketing budget is often the first business expense to be cut.
In 2009, an article in the Harvard Business Review said:
“In every recession marketers find themselves in poorly charted waters because no two downturns are identical. But there are patterns in consumer behavior and business strategy that either propel or undermine performance.
In recessions, consumers set stricter priorities and reduce spending. As sales drop, businesses cut costs, reduce prices, and postpone investments. Marketing expenditures are often slashed across the board.
But indiscriminate cost cutting is a mistake. Although it’s wise to contain costs, failing to support brands can harm performance over the long term.
Companies that take a scalpel rather than a cleaver to the marketing budget, and nimbly adjust strategies and tactics in response to customer needs, are more likely than others to flourish both during and after a recession”
So, what to do? Save money? Or keep investing in marketing?
After all, there are going to be a lot of people out there with little else to do but consume your messages.