Marketing During a Pandemic

Welcome to the Dove Direct Print and Marketing Blog. Today's post, "Marketing During a Pandemic," discusses variables for organizations to consider in light of the coronavirus pandemic, aka COVID-19. Containment and eradication of the virus is an ongoing issue that will remain at the forefront of our healthcare system, financial markets, and economy for the foreseeable future.

That said, we are committed to helping our communities persevere. Our hearts go out to anyone impacted, directly or indirectly, by the virus. We want to thank our healthcare workers who work selflessly around the clock to care for people in need. To our customers, suppliers, and vendors, please know that we will work tirelessly to deliver our highest levels of performance, availability, and security.

Our Quote of the Day:
"Stopping advertising to save money is like stopping your watch to save time." – Henry Ford

Most know that the nation's economy may be heading towards a recession. The world's financial leaders and the White House COVID-19 Response Team say that a global slowdown is already underway. That said, some remedies can help us restore confidence and, ultimately, the global financial markets.

In terms of marketing, this is not the time to reduce your marketing budgets. In 2008, during the most recent economic downturn, we saw major advertisers such as GM, Chrysler, and Ford, pull back advertising. Conversely, Hyundai, and Kia chose to remain on budget. When the economy began to recover and consumer confidence returned, GM, Chrysler, and Ford all lost market share, while Hyundai and Kia increased market share.

To Advertise or Not

The Great Recession of 2008 taught us two fundamental advertising lessons. One, consumer confidence is the number one barometer of sales measurement. And, two, those that choose to go dark with advertising generally lose market share.

In 2008, ad spending in the US dropped by 13%. Other mediums that were down included newspaper ad spending down 27%, radio down by 22%, magazines down 18%, out-of-home down 11%, television down by 5%, and online down by 2%. Keep in mind that the internet and social media were beginning to come of age.

However, there is a multitude of studies that cover one century cumulatively, and that refers to the distinct advantages of ongoing advertising during a weak economy. The advertisers that chose to continue or expand their advertising efforts grew sales and market share, both during the recession and after the recession ended.

Therefore, in short, and according to a famous adage, "When times are good, you should advertise. When times are bad, you must advertise."

More Reasons To Advertise

Brad Adgate, Independent Media Consultant, offers insight as to why advertising during a slowdown is an excellent idea with these points:

• The "noise level" in a brand's product category can drop when competitors cut back on their ad spend. It also allows advertisers to re-position a brand or introduce a new product.
• Brands can project to consumers the image of corporate stability during challenging times.
• The cost of advertising drops during recessions. The lower rates create a "buyer's market" for brands. Studies have shown that direct mail advertising, which can provide greater short-term sales growth, increases during a recession.
• When marketers cut back on their ad spending, the brand loses 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, with an increase in profits.

Adgate believes that there are more reasons to advertise than not during an economic downturn, primarily due to competitive and market behavior. 

Short Term Objectives

The ongoing discussion regarding stimulus packages has been to provide quick relief and short term economic fixes. That said, we have no precedence for a pandemic of this size. There is no roadmap for the financial challenges we will face.  Nor can we predict how long it will take to get this disease under control or when we will have an effective vaccine.

In light of these unprecedented challenges, and the ongoing effort to experience short term fixes, it would behoove all advertisers to take advantage of direct mail marketing to stem and shore up any short term gains.

Accurate Messaging

If the decision is to continue advertising, marketers, and brands need to ensure that all messaging provides a calming effect. All messages should be clear, concise, and accurate.

Brands that take the extra time to communicate reassuring messages will fare better in the short-run and long-run, in terms of sales initiatives.  It is also vital to offer communications to clients and customers so that they know how your brand is adjusting to the crisis. Customers value updates, ongoing messaging, and open dialogue. All go a long way toward making them feel that your brand does care.  Further, when the population at large continues to see advertising and marketing messages, that visual experience provides a calming effect.

The Net-Net

Companies should and can market their offerings during a pandemic. It is not the time to reduce or stop advertising. If anything, you should not only stay the course, you may want to increase the advertising spend. The goal should be to hold onto marketshare, mine for competitive opportunities, and assure the public that you will be here long after the crisis.

We recommend that all follow the experts' advice regarding this pandemic.  We are called to help one another, be our best selves, and know that we will get through this together. Thanks for reading "Marketing During a Pandemic!"



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