Why marketing during a tough economy is crucial for businesses
A tough economy and restrictive trading conditions have created uncertainty for many South African companies.
However, it is crucial that businesses which aim to grow continue to promote themselves through marketing activities.
The need for businesses to promote themselves during difficult times is well documented, including in a report by the Harvard Business Review.
The report stated that marketing and advertising are key for a business to position themselves for growth once the market picks up.
“Marketing isn’t optional – it’s a good cost, essential to bringing in revenues from key customers,” stated the report.
It went on to warn against cutting all marketing budgets when times get hard, which has been the case with many local companies during the COVID-19 pandemic.
Spend your budget wisely
When allocating budget to marketing, a business must only select channels which provide a measurable return on investment (ROI).
“Tough times provide an imperative to cut loose poor performers and eliminate low-yield tactics,” stated the report.
“When survival is at stake, it is easier to get companywide buy-in for revising marketing strategies and reallocating investments.”
In South Africa, the marketing channel which provides the best ROI is clear – Online.
As documented in Nielsen’s Media ROI Benchmarks report, online advertising provides the best ROI for South African businesses.
Online easily outperforms TV, Print, Cinema, Radio, and Billboard/Outdoor advertising channels – making it an easy choice for companies which need to spend their marketing budget wisely.