The crisis stage, however long it may last, will eventually be over. But the global economic recession is going to stay much longer. With external interventions into the functioning of society and economy, brands must respond to the changing needs of their customers, and that with often increasing pressure on marketing costs and financial management.
How to react?
The pressure on investments in marketing, product or distribution is growing ever stronger with the expected recession. The economic impact of COVID-19 is already significant and will be all the more so in a few months. If there is no other way and operational financing is under scrutiny, optimize marketing investments so that you don’t come out as a loser at the end of the recession.
One of the most influential thinkers of recent years are the godfathers of Marketing Effectiveness, mapping the influence of marketing on the growth of companies. One of the main conclusions of the studies is the global decline in the effects of marketing communications. It shows how reckless it was to jump on the lure of immediate results of performance marketing and how the lure of some areas of digital marketing structurally damages the brands.
Long-term plan vs Short-term survival
No one in the world has experience of a global pandemic and the consequences associated with it. It would be naive to follow precisely the approaches of the 2008 crisis. Let’s return to the basics of how marketing generates sales. Long-term communications, focusing on brand building, help to generate demand and reduces price sensitivity. Traditional media and emotionally built messages are effective long-term. Short-term, pro-sales oriented campaigns that benefit from already existing demand can quickly generate results. Digital channels are those efficient in short-term.
Intuition in a crisis suggests limiting channels that do not bring immediate results. But if the brand does not face an acute cashflow issue, and finances let you at least a little, resist the temptation. Those who did not cut investment in brand building in the crisis came out of it significantly stronger than competitors. Don’t shut your way to growth once hardship subsides, and follow the rules of marketing effectiveness.
Who we are already working with
CPI PG
We entice customers to reopened shopping centres
We prepared the communication concept for the reopening of 13 shopping centres after the coronavirus crisis. Within two weeks, we designed the main concept and key visual with individual modification options according to the requirements. We developed graphic materials for online, outdoor and in-store use. We set-up campaigns, KPIs and targets for advertising platforms.
What are we going to help with?
1. We will identify what change your market segment has undergone
The transformation of people decision-making is far from as fast as it is sometimes described. The principles and operation of consumer behaviour has developed for long years, and not even such an extraordinary event as a pandemic coronavirus is, does not change motivators and barriers of your target audience, from day to day. However, in recession, frequencies of purchases or shopping baskets do change and new variables can enter the segmentation. A diametrically different default situation may arise for the traditional retail brand, and another one for B2B.
2. We will propose a strategy for the impending economic recession
We will proceed from the functional principles of marketing effectiveness and a proven concept of strategy, based on research, targeting and positioning. Both demand and supply in the coming years will be turbulent, all 4P of marketing mix must comply with market reality. We will take the activity and strength of the competition into consideration and monitor your share of voice. If revision of the strategy is necessary it must be quick.
3. We will prepare an audit of communication channels and media expenditures
With decreasing volume of investment in communications, you might need to, sooner or later, cut marketing channels and budgets. A simple performance view, especially on digital media, virtually always means a lost perspective on re-growth. You may face cashflow pressure and, at the same time, pressure to meet the long-term brand growth goals. The solution is again to apply the rules of marketing effectiveness.
4. Creative help
With strategy already at hand you might need just a quick help to assist with the graphic materials, writing texts or support with social media content. We can provide a long time cooperation or just one-time help.
Strategy Team
Martin Drab
Jakub Kotal
Tomas Mocek
Iva Janigova
Jiri Jakl
Interested to know more
If you need to revise your marketing investments effectively, improve your marketing strategy or need just a consultation on various marketing topics, let us know.