When the economy seems a bit shaky, marketing and branding efforts are often the first budgets on the chopping block. And sure, reducing those expenses might provide some immediate relief. But what about the long-term impact? We’ve seen it firsthand: failing to invest strategically in your brand during uncertain times could lead to future consequences for the health of your brand…and therefore, your business.
Why invest now?
Economic slowdowns are inherently challenging but for forward-thinking businesses, they also offer opportunities. You just have to know where to look. By maintaining or strategically adjusting your investment in marketing and branding, you can:
- Prevent loss of market share: Consistent visibility ensures that your brand remains top-of-mind, even as competitors scale back their efforts.
- Build brand equity and trust: Demonstrating resilience and reliability during tough times strengthens customer loyalty.
- Capitalize on cost efficiencies: Media placements and other marketing investments may be more affordable during economic downturns, allowing you to stretch your budget further.
A downturn often reshapes consumer behaviors and market dynamics, providing a chance to differentiate your brand and realign with your customers’ needs. In other words, it may be the time for you to zag when everyone else zigs.
How to fortify your brand for the long haul.
1. Refine marketing initiatives.
Contrary to popular belief, businesses that maintain or enhance their marketing efforts during challenging times often emerge stronger. Take Amazon, for example. During the 2008 financial crisis, they actually increased their marketing budgets and focused on value-driven messages. While their competitors scaled back, Amazon cemented its position as a leader in e-commerce with a strong brand to match.
Actions to consider:
- Focus on high-impact, cost-effective channels. Social media, email marketing and organic content can deliver significant ROI without a heavy financial investment.
- Enhance brand storytelling. Connecting with your audience on an emotional level during difficult times can have a huge impact on your business by highlighting your values and commitment to their needs. This type of storytelling can strengthen your existing customer base or even persuade a broader set of consumers to choose your product or services over the competition.
Following the financial crisis of 2008, Coca-Cola ramped up its advertising efforts, focusing on messages of optimism and togetherness. This strategy not only helped the company maintain its market share but also reinforced a positive global brand image.
2. Strengthen employer branding.
Your employees are your greatest asset, regardless of what’s happening in the broader economy. Your employer brand helps solidify and promote what you offer as a company and what you expect from employees in return. Strong employer brands can help attract top talent, improve retention and reduce hiring costs. Take inspiration from companies that thrived during the COVID-19 crisis. Businesses like Microsoft and Zoom leaned into transparency and consistent communication, ensuring their teams felt supported and valued. This not only retained employees but also enhanced their external reputations.
Actions to consider:
- Clarify your employer brand. If you’re not quite sure what you stand for today, or you think there are differing opinions, get curious about why people love working in your organization and what values drive them on a daily basis.
- Consistently communicate the employee brand throughout the organization. From job listings to social media posts, internal communications, town halls and employee recognition programs, celebrate your organizational values to boost morale and reinforce a positive workplace culture – even when budgets are tight. A simple moment of recognition can go a long way.
Amidst various global economic challenges, Toyota has consistently emphasized its core principles known as, the ‘Toyota Way,’ which focuses on continuous improvement and respect for people. By ingraining these values into their corporate culture and ensuring they are communicated throughout the organization, Toyota has maintained a strong employer brand that resonates with both current employees and potential candidates. This approach has been instrumental in sustaining employee engagement and organizational resilience during downturns.
- Invest in your team’s well-being and development. Prioritizing your employees’ growth fosters loyalty and strengthens your reputation as a company that truly cares. Consider offering wellness programs, mental health resources, flexible work options or virtual training to create a supportive environment where your team can thrive.
3. Rethink resource allocation.
Over and over in our industry, we experience how constraints can inspire more creative and innovative solutions. The same can be true here. With strategic, highly intentional resourcing, you can amplify the impact of your marketing efforts.
Actions to consider:
- Optimize content production. Instead of cutting back on video or multimedia projects, find ways to produce content more efficiently — such as repurposing existing materials, leveraging in-house talent or tapping into user-generated content from customers and fans online.
- Reprioritize key initiatives. Review your goals and objectives for the year. Which ones are essential to moving the business forward at this time? Focus your efforts on campaigns and projects that align closely with those key goals, provide measurable ROI and, ideally, leverage timely market opportunities.
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- Though Zoom is now a household name, it wasn’t always. During the early days of the COVID-19 pandemic, Zoom stood out by offering free usage for schools and non-profits while scaling quickly to meet surging demand. By focusing on accessibility and reliability, Zoom positioned itself as the go-to platform for virtual communication, while competitors like Skype and Google Hangouts lagged behind.
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- Leverage partnerships where you can. Collaborate with other businesses or agencies to share resources and expand your reach.
In 2023, the Van Gogh Museum was celebrating its 50th anniversary. In order to introduce Vincent Van Gogh’s work to newer, younger audiences, a partnership was developed between Pokémon and the museum. While it may seem like an unlikely pairing, it’s rooted in the fact that Van Gogh himself was inspired by Japanese prints. This combination helped the museum continue to educate about this historic figure while leveraging the brand power and popularity of characters that appealed to a wider audience.
Left: Pikachu inspired by ‘Self-Portrait with Grey Felt Hat’, Naoyo Kimura (1960), The Pokémon Company International, ©2023 Pokémon / Nintendo / Creatures / GAME FREAK. Right: Vincent van Gogh, ‘Self-Portrait with Grey Felt Hat’, 1887, Van Gogh Museum Amsterdam (Vincent van Gogh Foundation).
Shoring up a foundation for future growth.
Adjusting your internal and external efforts during periods of economic uncertainty isn’t just about surviving — it’s about positioning your business for both short- and long-term success. By staying visible, strengthening your employer brand and reallocating resources strategically, you can emerge from challenging times stronger than before.
And remember, these downturns don’t last forever. The decisions you make today will shape your brand’s trajectory for years to come. With a little ingenuity and flexibility, you can use the opportunity to differentiate, connect and lead, ensuring your business is ready to thrive when the economy rebounds.
At Ervin & Smith, we’re focused on creating meaningful partnerships that deliver measurable impact. If you’re wondering what your organization should prioritize investing in for long-term success, or how to implement any of the internal and external strategies, let’s have an honest conversation. Our goal is to help you make the best decision for your business.
Ready to find out if we’re the right partner for you? Contact us today.