Thursday July 28, 2022

Our advice, don’t stop marketing!

Ride your way through a recession, the government offers their advice - they are suggesting businesses reduce their budget on marketing, reduce their prices and take the hit!

The government are keen to advise businesses to reduce their marketing spend to help keep the rising costs down in this economic downturn and cost of living crisis.

‘Cost of living tsar, David Buttress, has proposed the advert campaign but a government source said there will be no extra subsidies for businesses to cut prices. Instead, taxpayer money will be going on a marketing campaign.

The campaign messaging will be around recognising businesses which are helping during the cost-of-living crisis, and encouraging other firms to do the same. Businesses are being urged to join the campaign and cut their prices in exchange for adding the campaign name and logo to their branding. This could give businesses “kudos”, according to a government source. The campaign is intended to launch early next month.

In a speech to business leaders at the CBI on Monday night, Buttress said he “wanted their best ideas to help”. The tsar, who used to be CEO of Just Eat, suggested that businesses emulate schemes such as Gregg’s breakfast clubs, which give free breakfasts to certain school children.  

Unfortunately, all this lays favour towards larger businesses who are better able to absorb the costs.’ Smallbusiness.co.uk

However, business experts are advising now is not the time to disengage and reduce the dialogue with your customers but strengthen your relationship, ensure your brand remains strong and continues to align with their needs and you continue to listen.

And furthermore, some are reminding small businesses, ‘don’t yo-yo with endless deals and undermine your services and products with too many discounts and offers that may ultimately devalue your business.’

Business leaders are suggesting the government will do more damage in the long term with their unwelcome advice and marketing is not something that should be switched off. 

This government campaign is being heralded as both damaging and unwelcome as businesses consider how best to navigate a yet unknown landscape.

Our advice:

Don’t panic, you need to monitor your customers’ habits and changes to their buying patterns to understand how they are being affected and it is impacting your business before making dramatic impulsive changes.

Don’t reduce prices but instead introduce a new product that offers a solution. 

Keep marketing if you want to be remembered and place your business in front of potential customers. Explore options that ensure you remain active, visible, and relevant.

Don’t presume everyone is affected the same. Your personal experience and situation are not necessarily reflective of all your customers. Your products and services may be recession proof and not adversely affected by the economic downturn. Watch and learn.

Relationship building is important. Ultimately people buy from and support businesses that they feel a connection with and will search and demand good customer service, ensure you deliver and exceed their expectations.

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If you would like to discuss how you can market your business more effectively this autumn, get in contact lucy@wearemadcreative.com