Back to main newsletter By Sean Tracey, Creative Strategist. Sure, it sounds self-serving coming from one who trades in advertising—but don’t take it solely on my word. Check the facts1. Multiple research studies have been conducted and published by McGraw-Hill, Harvard Business Review, McKinsey, Coopers & Lybrand, American Business Media, and others (independent, non-agency firms, with no conflict of interest). These studies prove, historically, that marketers who stayed the course during economic downturns fared better in both sales and profits during a recession and for years after it was over. So, pulling back on your advertising during tough times will cost you market share and sales for your organization and its service lines. Continuing to invest in advertising in a down economy has proven to be reassuring to current customers (promoting your organization’s stability), win new customers for your brand, and even draw them away from competitors who have cut back on their advertising efforts. Some healthcare organizations consider it blasphemy to think of their patients as “customers.” I urge my clients to do so—or at least know them as savvy consumers. People are depending more and more on your marketing efforts and their own research online and via word of mouth to weed out their choices. It’s just not like the old days any more. If you let your marketing efforts dwindle, consumers won’t know you, won’t remember you when they are in need, and and won’t understand your services and unique positioning in the marketplace. And, if consumers don’t know you, how can they trust you? By not getting the good word out, you are doing yourself damage and you might even be doing your constituents a disservice. Patients have been known to put themselves or loved ones in danger by asking ambulances to drive farther than the nearest emergency department when they have lost faith in their local hospital. To advertise effectively in a recession, however, you may have to tweak your message, or even embark on an entirely new creative strategy. Keep in mind what’s on the mind of the consumer today. Don’t waste your breath (or your budget) bragging about your technology and machines as bigger, better, faster, or the envy of your healthcare-provider competitors. Save those features and benefits for better economic environments. Instead, spare no words or images to describe how your hospital, doctors, or services can save your customers time, money, and inconvenience. For example, staying closer to home is known to aid and shorten recovery time (not to mention the gas saved by you and your loved ones driving hours to a bigger hospital or clinic). Or, relieve some of their pressures by advertising doctor groups who are actually accepting new patients and/or can see them within a reasonable time frame. The average recession lasts only 10 months. By that calculation, now that the government has admitted that we’ve been in one since the beginning of 2008, we can hope to start coming out of this hole sometime in ’09. Take a lesson from the companies that did best in all the recessions since researchers tracked this stuff (1949). Fund your advertising aggressively during, and perhaps in spite of, the economy in the coming months. You could emerge the victor! Remember that maintaining your brand’s identity will cost less than rebuilding it later. When I was just a little tike, having the worst day imaginable, my Dad commented, “When the going gets tough, the tough get going.” I wasn’t too happy about bucking up and walking it off, but as it turned out, it was pretty good advice. The alternative isn’t as promising. Sean Tracey Associates is both an advertising/marketing firm and a production company that creates effective and strategic integrated marketing and advertising. STA specializes in the healthcare and financial sectors. Some of our clients include: Childrens Hospital of Boston, Akron Children’s Hospital, Blue Cross/Blue Shield, Optima Healthcare, Portsmouth (HCA) Regional Hospital, Jefferson University Hospital, duPont Children’s Hospital, The Massachusetts Medical Association, The Massachusetts Dental Society, CNN, NBC Nightly News, A&E, Bell Telephone, McDonald’s, Sears, MasterCard, Bank of Montreal, TD Banknorth, Timberland, Reebok, and R.C. Bigelow Tea Company. 1 The Studies and Related Links:
Meldrum & Fewsmith: (http://www.mactech.com:16080/adsales/recession_marketing/)
Roberts, Kieth. What Strategic Investments Should You Make During a Recession to Gain Competitive Advantage in the Recovery, Journal of Strategy & Leadership, Vol. 31, Issue 4.
International Journal of Research in Marketing, Vol. 22, Issue 2.
American Buisness Media, The Value of Advertising During an Economic Downturn
AllBusiness.com, Excerpt from NW Ayer, Inc. report: (http://www.allbusiness.com/marketing-advertising/advertising/260415-1.html)
Christianity Today International: http://www.cti-advertising.com/newsletters/article.asp?id=121)
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