OUR BLOG

By Craig Trout, Owner & President

In today’s economic climate, businesses are struggling. Not only is it difficult to fill open positions, but inflation is causing major headaches. For a variety of reasons, including effects of the pandemic, current demand for goods and services is outweighing supply, causing costs to skyrocket. To slow down the economy and give supply a chance to catch up with demand, interest rates have been climbing. It’s harder for people to get what they want when they want it, for the price they want it, which means people and businesses are forced to think about how they’re going to spend money intentionally.

The challenge during a high-inflation environment is people don’t feel comfortable making investments or spending money. Clients are looking for ways to hold on to cash. They want to do their research, and they want to get the most value for whatever they’re buying, whether it’s a service or product.

When the economy tightens up, businesses look to save money too, and they often start by cutting back on their marketing budget. However, times of economic strain are actually the best time to invest in marketing their business. Holding on to cash and looking at ways to cut costs are a finite solution — you can only cut so much before you need to make drastic changes. Marketing, however, is infinite.

The opportunities to attract more revenue and customers are endless. The best business solution is to do a combination of both — save as well as invest in marketing. Businesses can cut costs by looking at overhead expenses, evaluating outdated equipment, and considering what needs to go and what can be streamlined. Cutting back can’t be the only answer, though. Having a solid marking strategy is the other half of the solution.

What Are the Advantages of Marketing During Periods of High Inflation?

There’s the school of thought that when money gets tight, companies cut marketing first. That means there’s a good chance your competition will go dark, so if you increase your marketing budget, you’ll be able to influence more people. You have a greater opportunity to reach your target audience when fewer companies are competing in the market.

What Should Companies Prioritize in Today’s Market?

Of course, you’ll want to set priorities for your marketing dollars. When creating your marketing budget, first look at your business goals.

Consider:

• Is this the right time to launch a new product or service?
• Is this an opportunity to increase your geographical footprint?
• Is this the right time to promote a core product that you can now sell more easily?
• Is this an opportunity to create a service or offering that enhances your current products, such as extended support or maintenance programs?

What Are Some Bad Marketing Decisions to Avoid?

Bad decisions happen when companies are flippant about their marketing. You can’t do it willy-nilly. You need to be more focused than ever on what you want to accomplish through marketing. Narrow your scope instead of keeping it broad. Focus on a key area that you want to develop or a market you want to grow. Intentionality forces you to be more purposeful about every decision.

How Should Businesses Handle Changes in Pricing?

Increasing your prices can be disheartening because clients are especially price conscious when money feels scarce. Remember, though, if you’re raising your prices, so is your competition. If you don’t, you’ll be out of business. Use this time as an opportunity to work on your messaging. Show how the value of your products and services outweighs the cost. Help your audience see they’re getting a lot more than what they’re paying for.

Opportunities for Better Revenue, Even in Uncertain Times

When it comes to making marketing decisions, the goal is to separate yourself from the competition, especially during times of inflation. If you’re not sure how to make that happen, contact our experienced team at Alpha Dog Advertising. We’ll help your business get the upper hand on the competition and thrive, even in today’s economic climate.