B. ..Although the global pandemic of COVID was somewhat unprecedented, recessions have always been a part of world history. These unavoidable downturns certainly have an impact on businesses of all sizes, especially regarding marketing and advertising.
Yet, a recession can also bring an opportunity to rethink the advertising model for your business. Try something out of the box like Pedicab advertising, and focus on growing your customer base for when the economy improves. It is also possible to save money and take advantage of lower fees yourself.
Luckily, now with the pandemic on the manageable side, consumers are traveling and spending, even if it is with more scrutiny. Here are some of the positive and negative effects a recession can have on marketing.
One major benefit of a recession is that prices drop for everyone. That includes big corporations, and small businesses alike can benefit from marketing strategies that are more economical. It can be a good time to restructure and focus a campaign on acquiring new customers in unusual and thrifty ways.
Since consumers restrict their spending during recessions, it is important to get their attention without a huge price tag. Customers still want a pleasant and enjoyable shopping experience, so what better way to advertise than on a pedicab?
An eye-catching tricycle service with a “moving” ad, is a great way to embed a company name into a potential customer’s brain. Especially if the company sponsors the pedicab as a free way of literally driving customers to their front door. It can be exhausting to walk around the city, especially if you are a tourist. It is also very easy to get lost when you don’t know where you are going.
A pedicab can be an exceptionally good solution to these problems. In turn, become an effective marketing tool when other options are just too financially steep. This approach could be wildly successful in expanding your business and customer base during a recession.
Your Customer is Your Ad
If a potential customer hops on a pedicab with your company’s logo, chances are, they are a traveling tourist – your free advertising campaign. Travelers love to take selfies and tag the places they visit. There are a few easy ways to get your customer to advertise for you.
Offering your customer a big incentive great start, such as a free ride to their brick-and-mortar store in Any City, USA. If they hop on a pedicab, they are not only getting a very useful service. But they will see the mobile marketing ad as an experience and be anxious to share.
By posing on the pedicab and taking selfies, chances are your business logo will be seen in the photo, tagged, and put up on social media giants like Facebook, Instagram, and Tic Tock.
And while your marketing department can’t exactly leave early for the day, utilizing your existing customers to influence your potential customers is a win-win, and it will barely cost you a thing during a downturn in the economy.
It May Cost You
So far, we’ve shown how marketing in a recession can be done on a tighter budget. Now it is time to examine a few of the negative aspects of marketing during a recession. One of the downsides is you should consider spending more on advertising.
It may seem logical to cut expenses on acquiring customers when those customers have no money to spend in a recession. The reality, however, is that even during a lull in the market people are spending money. It might be a good time to invest and increase expenditure in the marketing department.
One of the reasons for splurging on advertising during a recession, studies have shown that companies that do so, see an increase in sales even during the downturn. Since most of the competition is pulling their more expensive ads. It is a great time to invest and have your ad be even more noticeable.
By increasing your spending on advertising during hard times, you show all past and future customers that your company is stable and secure. Giving them even more reason to return when times improve.
The Harvard Business Review suggests that marketing should be tailored to the specific needs and concerns of their customers. Depending on what type of actions your customer base engages in during a recession, catering to their specific needs can go a long way. For customers who like to slam the brakes on their spending. A campaign that promotes lower-cost items may be a good approach.
In conclusion, a recession doesn’t always mean a death sentence for a small business or a wasted expense for a larger corporation. By understanding the pros and cons of how to advertise and market during downturns, it can turn out to be a huge benefit.