Marketing is the bridge between the company and the customers. If you lose customers, you will lose sales. The goal of marketing is to increase sales and create added value.
Research into crises from the 1920s to the 1990s has shown that advertising investment increases sales and boosts company growth during and after a crisis. Those who advertised actively grew by 275% compared to those who did not. In the 1980s, McGraw-Hill Research analyzed 600 companies in the B2B sector: those that increased advertising during the crisis, grew during the recession and 3 years after it. During the crisis of the 1920s, companies that boosted advertising grew by 20%, and those who limited advertising budgets emerged from the crisis 7% below their 1920 level.
In a volatile economy, advertising products (samples, free lessons) increase the return on investment. Because they:
Increase sales. 62% of buyers continue to interact with a company after receiving a promotional product.
Increase brand awareness. 84% of customers remember the company that provided them with the ad product.
Improves relationships. 42% of customers are more loyal to the company after testing its products.
In a crisis, companies are looking for more effective advertising models, especially for those who work directly with customers. The main requirement of customers is the ability to more accurately assess the results of investments. It is customary to save on advertising and marketing in such times, but this is not always justified. It is much more important to spend your money thoughtfully. A study by Conento using one of the FMCG brands showed that it is possible to achieve an increase in total sales of up to 8% only by reallocating the advertising budget across channels - without reducing or increasing anything.
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