Article Number : 4476 |
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| Date | 5/14/2009 9:49:00 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4476 |
| Abstract | A recent poll from CNN and Opinion Research revealed that 73% of Americans are fearful about the way things are going in the country. Fear can cause some people to do crazy things with their businesses and money. It also can cause some to just... |
| Article | A recent poll from CNN and Opinion Research revealed that 73% of Americans are fearful about the way things are going in the country. Fear can cause some people to do crazy things with their businesses and money. It also can cause some to just quit when in other times they might have stuck it out. These difficult economic times will end some day, and that’s what smart business owners must keep in mind. They need to put aside fear and position themselves to survive now and thrive down the road. There are many businesses that gained market share during other recessions. Procter & Gamble is perhaps the most well-known case. The company increased its status as a manufacturer of soap and other household products and increased its sales during the Depression by continuing to advertise when other companies cut back. In fact, the company spent money on a radical idea at that time: radio serials for homemakers to listen to while they did their housework. (These programs eventually became known as soap operas and moved to TV.) However, plenty of other companies saw growth during recessions. During the 1989-91 recession, a MarketSense study found that the following companies increased sales by the following percentages: Jif peanut butter (57%), Kraft salad dressing (70%) and Pizza Hut (61%). So how did they do this? Each increased their advertising during the recession. Now watch this: Taco Bell also increased its advertising and raised sales by 40%. At the same time, its competitor, McDonald’s, cut back on advertising and witnessed a 28% drop in sales. A Buchen Advertising study found that companies that decreased their advertising in the recessions of 1949, 1954, 1958 and 1961 lagged in sales behind companies that did not cut back on advertising. The lag continued even after each recession ended. Bottom line: Pulling out of the spotlight provided by advertising negatively impacts sales. Advertising vehicles today include print, TV, radio, direct mail and Web. They must also reach out into the community for low-cost methods of advertising, such as speaking at community events and meetings. But it also means that once you have people in your doors, you must follow through with the promises that you’ve made. Remember, your company or your store is your brand. A brand is a promise. If you break the trust of those you seek, then no amount of advertising will help you through this time. Advertising and keeping promises: It’s a plan of action that’s proven profitable in tough times. |