Developing a Marketing Strategy to Navigate the Challenges of an Economic Downturn

COVID-19 has transformed the world and has reshaped the marketing landscape in fundamental ways. However, the biggest lesson it has taught marketing leaders is to develop strategies that will not only help their brands survive but also enable them to successfully navigate the challenges presented by any potential economic upheaval.

For many businesses, the threat of an economic downturn creates panic and that may increase the chances of crippling their initiatives. Yet, according to experts, companies can witness significant growth and also steadily increase their ROI during downturns. By creating smart strategies, reframing their messaging, and focusing on the right industries, brands can win even in crisis mode.

Let’s look at some of the strategies that brands can embrace to improve their sales and marketing success during an Economic downturn:

Identifying the right imperatives for the new marketing strategies

Before embarking on executing their marketing strategies, brands should evaluate the negative impact a downturn may have not only on their business processes but also on their customers. By taking this step, brands will be able to filter out the noise and easily focus on the key issues, identifying the top priorities they need to address. Furthermore, they can create their strategies based on their industry, the sectors they serve, and the customers that are affected.

Also Read: Coronavirus and Economic Downturn – Consumer Sentiment Is Softening for Local Businesses

Brands should also study their industry as well as peers to assess the impact of the pandemic. Instead of second-guessing, they should make an active effort to engage with their customers. They should use the information to create a list of imperatives such as identifying cost-cutting opportunities, operational improvements, and customers’ desired outcomes.

Rethinking the product and audience

After gaining the necessary insights from prioritizing imperatives, brands need to rethink their selling, marketing efforts as well as how they are positioning themselves in the marketplace.

Brands need to align their product and service offerings with the ones that will help their customers achieve their business objectives. They need to focus on outcome-sell rather than feature-sell.

Brands should think about the industries that will be least likely affected by a pandemic-like scenario and how it can affect their marketing approach. They must also ensure the outcomes are specific to the industry they target.

Reframing the story

Brands need to resist the temptation of telling the same story or spreading the same message they did before the pandemic. They should consider what the crisis has taught them and how they can use that information for positioning and connecting effectively with their customer base.

Also Read: COVID-19 – How to Manage Marketing Efforts

Brands should find the right balance that is positive and at the same time remains empathetic towards the situation and their customers. They should strive to deliver messages that are authentic and showcase the positive impact their product or service can have on the customer’s needs and how it can help them to achieve their desired outcomes. Additionally, brands should recognize the circumstances the customers are facing and use it as a benchmark for strategies that will help them to emerge stronger.

The recent pandemic events have shown that the economic downturn can appear out of nowhere and can make even the best strategies fail. However, by constantly adapting and being open to experimentation, brands can be at a better place to seamlessly handle the COVID-19 crisis.