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Color Psychology and Marketing
color psychology
Marketing Wisdom in Tough Economic Times

Probably one of the first questions both small and large business owners and managers ask when an economic downturn hits is, "Where can I cut costs?"

That's a smart question. Our experts on Wall Street and Main Street can afford the time to debate if we are even in a recession, but savvy business folks look at their own bottom line for the truth. When the news is bad, it ramps up fears and causes knee-jerk reactions to batten down their business hatches. Often they cut spending by laying people off, reducing orders, stopping all training, and greatly reducing marketing activities. In nearly all businesses, these are the most common ways to get ready to weather financial storms so their business can make to a brighter day.

Our focus is on marketing. Is it a good decision to decrease or stop marketing in difficult economic times? Certainly it sounds logical to say, "We can live without a few ads to help cut costs."

However, it appears that logic doesn't hold up when studied more deeply. A plethora of studies (most focusing on traditional media outlets) show that in the long run, the companies that maintain marketing budget levels – or increase them – during a recession or economic downturn outperform the companies that reduce marketing spending at those times.

The reason is simple – almost too simple! When the majority of businesses are decreasing spending on marketing, the media outlets get hungry and begin to offer a bigger bang for the marketing buck, and the few who maintain their budgets (or increase them) gain greater influence on target customers.

Therefore, we strongly encourage businesses to resist the urge to respond with a knee-jerk action of pulling the plug on their marketing budget – sit quietly for a bit and watch others do that. Then, when the media outlets get hungry and offer deals, be the first to jump in and buy up the marketing opportunities (at less cost) in both traditional and non-traditional media outlets.

The best marketing wisdom in tough economic times is to spend your marketing dollars very wisely. Resist the urge to decrease your marketing budget. Let your competitors do that while you seize this rare marketing opportunity. You will enjoy the results.

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