What would happen if we were all invited to join in a recession, and nobody went?

During a slow-down or even a recession, the bulk of business continues to grow. Real global GDP has not shrunk year-on-year since comparable records began in the mid 20th century – even the final quarter of 2007 saw Eurozone GDP growth of 0.4 per cent. Businesses and households continue to function and to purchase goods and services needed to do so.

The marketing budget is often one of the first to be cut in a slow-down; and while this may help the bottom line now, it’s likely to have a negative effect on market share and profit in the longer term. So when your competitors are slashing their budgets, consider the fact that you have an opportunity to shine in the darkness.

Think about purchasing behaviour for a moment. During periods of slow growth, more pressure is exerted on suppliers to deliver value. Existing suppliers will be subject to increased scrutiny and switching suppliers is more likely.

An economic slow-down could be the time when your marketing budget can give you most bang-for-buck.
Sam walton created the worlds biggest retailer in Walmart. During the last slowdown, he had this to say, “Recession? I thought about it and decided not to take part“.

It’s important to realise that marketing messages may need to be refined in response to changed customer needs. For example, demonstrating that a product or service saves money for your clients may be more important. What’s more, if you maintain your market presence while others around you are cutting theirs, who will be in front of mind when customers are in a position to buy more?

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3 Responses to “What would happen if we were all invited to join in a recession, and nobody went?”

  1. What an interesting thought Richard – I take it you aren’t participating in the ‘let’s all get poor together” attitude sweeping the country at present then!

  2. Thanks LPH….
    You’re right, we’re taking a positive approach to these difficult times, and there is still plenty of work out there, so its a simple question of making sure my company is considered on as many works as possible.

  3. […] – bookmarked by 3 members originally found by SailorStar23 on July 14, 2008 What would happen if we were all invited to join in a recession … […]

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