Trylon Communications  - August 2003
       

Marketing out of a Recession

Following an industry downturn, new leaders tend to emerge. These are savvy companies who take advantage of opportunities offered during slow times to build a higher profile and seize the spotlight.

Every company experiences stress and disappointment during a recession. How management reacts to these pressures determines who wins the prize when the inevitable market upturn occurs.

Many companies pull back across the board, cutting employment and expenses. Marketing is usually the first area hit. Advertising falls, and PR opportunities are lost.

Companies that emerge as leaders following a downturn also reduce budgets, but focus on the long-term picture. In fact, they actually increase their ad budget, gaining a significant edge over their competitors’ lowered visibility.

In an analysis of the 1990-91 recession by McKinsey & Company, companies that moved up spent an average 14 percent more than unsuccessful companies on Sales, General and Administrative items. (Click here for report.)

The same is true in public relations. Companies that aggressively pursue strong PR strategies will win more media placements than those that fall under the radar.

What is the key? In today’s “what have you done for me lately?” rush to soothe shareholders by employing short-term fixes and focusing on the next financial report, many businesses fail to see the benefits of long term public relations strategies and overlook incredible opportunities that exist during slow periods.