TRENDS / INSIGHT
Don’t Stop Marketing! You Must Be Pro-Active by Ken Corbin
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If you were in the manufactured housing industry between 1998 and 2009, you experienced our largest sales decline ever. During that time, new home shipments dropped from 375,000 to under 50,000, or a remarkable 87%. Over 10,000 retailers, manufacturers, lenders, and suppliers went out of business, were acquired, put a key in the door for the last time or filed for bankruptcy. It was our darkest time and one we never want to re-live. In recent weeks there has been some talk about an economic recession. When a recession happens, businesses become fearful of declining revenue and begin to cut back in various areas, including their ad spending.
Brief History Lesson In the ’08 recession, ad spending in the U.S. dropped by 13%. Broken out by medium, newspaper ad spending dropped the most at 27%, radio spending dropped by 22%, followed by magazines with a decline of 18%, out-of-home by 11%, television by 5% and online by 2%. From 2000 to 2008, McGraw-Hill research involved 600 companies and their marketing spending. They concluded that the firms that had maintained or increased their advertising during those turbulent times boasted an average sales growth of 275% over the next five years. But those companies who survived, yet cut their advertising, saw paltry sales growth over the next five years of just 19%.
Advertising During Slowdowns There are several reasons to advertise during a slowdown. The “noise level” of your competitors will decline when they cut back on their ad spending. It will allow you to re-position yourself or maintain your standing as the leader in your market. You can project to customers the image of stability during challenging times. The cost of advertising will likely drop. The lower rates create a “buyer’s market” for retailers and communities. This is one time I’ll recommend direct mail. When companies cut back on their ad spending, they lose its “share of mind” with consumers, with the potential of losing current and possibly future sales. An increase in “share of voice” typically leads to an increase in “share of market”. An increase in market share results in added profits.
Social Media So, where to start? It’s simple. Today it’s social media. Let’s be honest. You have more time for planning and outreach than ever, so use it to stay busy working on your campaign. During the past year, I’ve conducted countless seminars on marketing to our customers. There’s been a dramatic shift in our potential buyer’s social media preferences. Today, the biggies in our industry are, in order, the following: 1. Facebook 2. YouTube 3. Pinterest 4. TikTok
5. Reddit 6. Instagram 7. Snapchat
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