There has been a great deal of “recession is over, recession over by December” and other nonsense in the media lately. But the fact of that matter is that Recession Marketing strategies and tactics are more important now than ever before.
A Harvard study of publicly traded companies coming out of the last three recessions shows that 41% ceased to exist in their former public state ( bankruptcy, liquidation, privatization, or they were simply acquired); 48% struggled through in varying states of vulnerability; and only 11% emerged intact (some even stronger) with growth rates of 25% or more in the subsequent three years following the recession. Only the most proactive, visionary companies ever “win” the recovery after a major recession.
Many businesses are stuck in a cost-cutting mode. They focus on weathering the storm so they can make it to the “recession is over” promise that is supposedly just around the corner. However, they do not understand that after a recession is often a long drawn out period of recovery. In the meantime they unknowingly are causing the final blows to their struggling businesses.
By simply focusing on the short-term, letting their time to fill new positions lag, and only addressing immediate problems, these companies are failing to plan their marketing properly and ultimately it is very unlikely for the effects of this recession to be over for them any time soon.
We must start by educating management and staff on the importance of a strategic marketing plan throughout the remainder of the recession and the upcoming recovery. Businesses that do this now will be more likely to recover easier and become profitable again.