All the bad economic news of late may be creating a self-fulfilling prophecy of a recession. It’s all about people’s collective mindset regarding the strength of the economy, whether optimistic, prompting investment and spending, or pessimistic, leading to cutbacks and downsizing. In that sense, the economy is like a brand. It is infused with either confidence or doubt, and then reaps the profits or losses accordingly.
The one good thing about a slowing or even recessive economy is that it is a great time for companies to gain market share. If competitors move into a siege mentality, courageous leaders can spend a little more, invest in the future, grow their brands and profit from the rewards. It’s like buying stock or real estate when the market is down.
The opportunity to gain market share in today’s uncertain economic climate is further enhanced by the decline in advertising revenues that media companies are experiencing. If there was ever a time to negotiate a more advantageous media buy, it’s now. Traditional media—TV, radio, print—are looking at a bleak future. Once the “quadrennial effect” of the election and the Olympics is over in 2008, the prospects for 2009 ad revenues are even more dismal. If your marketing mix includes mass media advertising, get ready for some bargains—but practice playing hardball, so you can get the best deal possible.
Regardless of your need for mass media, the opportunity to be a positive, forward-looking brand that becomes more visible—not less—during hard times, communicates that your company is strong; that your organization has the staying power to be here for decades; that you have the financial strength to back up your promises; and that customers can expect innovation, leadership and courage from your brand in good times and in bad.