Slashing, Burning and Hiding Today Is Not a Wise Tactic
Lessons teach the importance of maintaining your profile in lean times.
By John Landsberg
Henry Ford said, “He who stops advertising to try and save money could just as easily stop his clock to try and save time!”
Ford realized way back at the turn of the century that business people need to be bold when it comes to down times, such as we are experiencing now. This is not the time to simply “tough it out” and go into hiding. That tactic has never worked in the past and it won’t work in the future.
Corn Flakes and Cadillacs
The economic problems we are experiencing now often result in a sadly predictable response by business people: cut public relations, cut advertising, cut research, cut expenses, cut people. It’s a death spiral that often ends in the demise of a business.
There’s an old saying that says, “He who forgets history is condemned to relive it.”
Here is a true story for you. In 1929, cereal makers Kellogg’s and Post were in a torrid battle for the top spot in the breakfast cereal market. When the Great Depression started, Kellogg’s continued its advertising spending. Post took the opposite tactic and cut back its ad spending.
Kellogg’s emerged from the Depression as the leader in the cereal market. In fact, it is a lead the Battle Creek, Mich., company holds to this day—nearly 75 years later. That investment in advertising during a down time has resulted in millions upon millions of dollars in increased revenues in the ensuing years.
During World War II, Cadillac continued to advertise its high quality even when the company was not producing cars! It simply touted the quality of its work in creating engines for war-time use. The tactic worked magnificently and when the company went back to building cars after the war, sales skyrocketed.
Customer Awareness
Maybe a question for businesspeople is in order: “When the current economic problems turn around, will anyone know your company is still in business?”
In reality, this is an excellent time to implement communications strategies and spend money in those areas. People are still looking to media outlets for information and media outlets are very willing to offer cost-effective programs. The same is true in public relations today, with a glut of practitioners willing to do quality work at very competitive prices.
A recent study pointed out that more than 48 percent of U.S. adults believe a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. When customers believe a business is struggling they start looking to others to meet their needs.
The bottom line to all this is no business can cut its way to profitability and growth. If you are sitting on the sideline in today’s challenging economy, you will be sitting on the sideline when things improve.
My favorite slogan says it all, “When you stop getting better, you stop being good.” How you come out of this economy will be determined by the decisions you make today.
John Landsberg operates Bottom Line Communications, a Leawood-based marketing communications company. (913) 338-5760//
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