As the Bank of England warns that Britain could be heading into a ‘steep recession’ we should all be preparing for more competitive, price sensitive times ahead.

During a slowdown, the balance between different types of marketing tends to shift to favour the more direct, more measurable channels. Branding and other forms of ‘push marketing’ generally drop while direct marketing tends to rise, due to its more immediate correlation to ROI. Research by a leading investment bank looked back at the last six recessions and found that spending on direct marketing actually grew during six recessions.

What this suggests is that a recession should probably signal a different marketing strategy. As ‘interruption-based’ mass advertising, which simply shouts your message at customers, declines, it is worth focusing on more personal, relationship-based strategies such as search marketing, email marketing, lead nurturing and online communities.

Whichever method your business uses to talk to its customers, suppliers, investors, employees or bank, in times of recession it is more important than ever to make the communications measurable and effective, with a clear, unambiguous message. Maintaining confidence on your business, both internally and externally, can be crucial when times are hard, which makes a clear communications strategy a valuable tool.

Interestingly, research also showed that a downturn creates opportunity to accelerate growth faster than one’s competitors, enabling those that are able to act quickly and decisively to increase market share. Now may actually be the best time to step up your marketing – at least in quality if not quantity. One thing’s for sure, whatever business you are in, now is definitely a good time to review your marketing strategy.

This news article is part of the Winter 2008 edition of DNAINSIDER Newsletter.  

For information please contact our Client Services team on 01803 616100 or visit or website at www.dnaadvertisng.co.uk