The real estate market has been bad for the last couple of years and it’s just now starting to show signs of a slight recovery. Over the last two years, many agents have had to cut back on advertising to increase the bottom line.
I just read Three Ways to Compound Your Marketing over at RIS Media, which is a great article, but it made me think of something I remember reading many years ago in some business book.
During a recession, the top companies INCREASE marketing spending. This is why they continue to be the top company when the recession ends. These companies that spend the most during a recession on advertising and marketing are going to be the one’s that people remember when we’re in a bear market and all companies increase their spending as new companies are formed and enter into the competition!
Here’s an article titled Marketing Your Way Through a Recession which explains how to market during a recession and here’s another article called Should You Up Your Marketing During a Recession? on why you need to be marketing during a recession.
Now going back to my primary point and the RIS Media article, if you aren’t marketing during a recession then there is nothing to build upon or compound when the market starts to recover. If you wait until the market is recovering then you’re already too late and that’s when you see the successful companies rocking out because they’ve been marketing the entire time.
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You are absolutely correct. I read a study down back in the 80s/90s during the last recession. Companies that maintained or increased their marketing did significantly better once the recession was over than those that didn’t. A lesson that businesses would do well to remember.
Aggressive marketing could pay dividends. But during a recession or any other economic downturn, marketing has to me more targeted or more precise. People start cutting back and marketers have work harder in order to appeal to a specific need that consumers have.
In order to gain most especially during recession, there needs to be an effort made. These companies do their best in order to sell despite the consumers holding tight on their budget. Moreover, it’s a marketing strategy and whatever result it would yield, that is yet to be seen.