“Advertising is not an expense but an investment”
Maintaining a business’ competitiveness in times of economic crisis often means cutting costs. The popular belief that marketing is an operational expense makes many businesses cut back on advertising without thinking twice. We publish an article from VIA Empresa, where Gemma Vallet, Director of 11Onze District, explains why investing in advertising in times of crisis can save our business.
Marketing to survive an uncertain autumn
Advertising in the business plan is not an expense, it is an investment, a lifesaver, it can keep you and your business from closing down.
The “reasonable” price, the so-called pricing in marketing, is becoming another one of the puzzles that have to be solved
In these times of economic crisis, it is worth asking what companies, entrepreneurs, and people in charge of marketing, sales and branding can do to continue selling in an autumn season that looks critical, marked by what some call uncertainty… The uncertainty at this point is rather little, it is certain that we are immersed in a global crisis of historic proportions and consumers, and citizens, have already begun to contain their expenditures. What is uncertain here is how long this restraint in consumption will last, and for the time being – we, the consumers – in this environment are going to buy, and consume, just what is fair and essential.
And this is the first thing to be clear about, to understand what is essential for your clients, for the consumers of your brand. This question or reflection must be done consciously. Indispensable is the bread and also what is classified as entertainment and leisure. For example, in times of crisis, music (culture, which for some governments is a reason for budget cuts) is an asset that can be classified as essential and is enjoyed in concert and festival formats. At a reasonable price, because people now need their moment of escape like bread.
The “reasonable” price, the so-called pricing in marketing, is becoming another one of the puzzles that have to be solved so that the numbers work out, and we don’t have to close down because we have adopted a low-cost policy in which we have been giving away products and services.
The brand, will they buy a brand, or will they opt for private labels or brands born, incubated, in marketplaces such as Amazon? The brand is still the best bet that can be made in any business, let’s not doubt it at this point. Let’s continue to invest in building a brand. Mercadona carved out a niche for itself, a good niche, by selling better than anyone else in groceries, their own brand… The truth is that Mercadona also invests in maintaining its good reputation, in building its own brand.
Advertising: what to do at this time? Above all, don’t cut back on brand and product communication, on advertising, because it will be worse later, if you cut this item, they will forget about your brand and your products and services… And this branding and marketing thing has a lot of common sense: if they forget you, they stop buying from you. Maybe your financial director reminds you that you have to cut costs and advertising is in the expense column. We don’t quite know how it got there. That advertising item in your business plan is not an expense, it is an investment, a lifesaver, it can stop you and your company from closing down.
Study the market well, it is time to invest in data, in market intelligence.
It is time to study, to review those marketing feats, as was once a historic campaign in the detergent market, the campaign starring a general manager, a CEO, Mr. Manuel Luque, who saved the company at a time when all signs were of closure with a challenging message: “Search, compare and if you find something better, buy it”. Transparency, honesty and good work… Essential.
You can read the original article here
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