Even though the economy is showing signs of improvement in the USA, there are still some companies that feel a little concerned about their future.
It is very important to maintain leadership and visibility in the market place—especially in times of crisis. You must sustain the brand positioning that has set you apart from the competition so far. However, many companies, including small business owners, decide to stop their advertising efforts during these difficult times. They see advertising as an expense, not as an investment.
Henry Ford said, “A man who stops advertising to save money is like a man who stops a clock to save time.”
Some business owners and executives also think that stopping advertising is the easiest way to cut costs. Minority efforts are the first programs to disappear, even though they represent a big portion of business success. What most people don’t see is the long-term damage they are doing to their brands with these decisions. Sales and market share will also be affected for the next 3 to 5 years, allowing the competition to become a top of mind choice for their customers. Once you lose trust from them, it will require more investment to get it back. And even then, it is not guaranteed.
In economically challenging times, you have to be innovative and creative about how you spend your marketing dollars. Knowing who your customers are and how influential they are with your business is the key to making the right decision. One of the challenges that corporate America faces is that sometimes they have executives in their marketing departments that are very knowledgeable about the company’s products, but they have a substantial lack of understanding of who their customers really are. So, decisions are made based on personal taste and current media relationships. Also, minority targeting is usually one of the first programs to be cut. So, you have to ask yourself 3 important questions:
1) If Latinos represent 15% of your business and keep growing every year, don’t you think that your decision will be very impactful for your business?
2) How much profit are you leaving on the table?
3) How difficult will it be to get back?
It is important to understand and analyze your marketplace before making drastic decisions. Research the market. Learn how it is evolving. Be flexible and adapt to new technologies. Embrace new cultures in all levels of the organization. Listen and respond to your customers’ needs and desires. Learn how minority groups are impacting your bottom line now and in the future. Identify key brand ambassador opportunities that can help you maintain leadership in the market. Remember, everything you have ever wanted is on the other side of fear.
Greater knowledge, understanding, and preparedness are powerful catalysts.
