Why advertise now? What Kind of fisherman are you?

I have been asked by many business owners, “Why advertise during a recession?” and “Why shouldn’t I reduce my advertising/marketing budget?” These executives perceive they will save money and ride out the storm. If we view these questions through the eyes of a business owner, we find that almost every company strives to win and retain their share of the market through creative and/or directional advertising methods. Let’s look at this as an analogy and think of market share as a lake full of fish. With all your competitors fishing from the same lake, you have “X” chance to catch your portion of fish. If you have 100 fishermen around the lake, your chances of catching fish are only increased by your skills as a fisherman, your tackle, location and luck. During a recession here is my perception of what may happen:

You have several types of fisherman who are seeking the fish:

Extravagant Anglers – These companies will fail during these economic challenges:

These companies have purchased the best equipment, advertising, locations, office equipment and have very little operating capital for their business. They love the idea of owning a business and calling themselves CEO’s, President, Chairman and Business Owners.

• These companies have little to no planning, budgets, benchmarks or accountability for their companies.

These companies will fail during a recession and will leave more fish for the rest.

Entrepreneurial Anglers – These companies have a high probability of going out of business.

These fishermen have the passion for fishing however often lack the planning, capital or knowledge to successfully build or retain their businesses in these challenging economic times. Often these company owners will have the work ethic to operate through their shortfalls. These companies also have little to no planning, budgets, benchmarks or accountability for their companies.

These companies can operate during a recession however the majority will go out of business.

Beginning Anglers – Depending on the skill set, work ethic and planning results will vary.

• These fishermen are the majority of the group. The results are significantly different depending on the company.
• There are three types of companies that fall into this category:
  

1. Company A: These companies have established a solid business plan, raised operating capital and have developed a solid marketing plan for their company.


2. Company B: These companies have a good idea, however little to no budget to build their business. They keep their overhead low and stay afloat.


3. Company C: These companies are still gaining experience and have been operating for a short time. They are cautious with decision making and adding additional financial strains on their business.

• Many of these companies will ride through the recession and prevail on the other side. Some of these clients will close their doors because they are not big enough to sustain the decrease in revenue and a few will close their doors because it is just too hard to stay open.

Novice Anglers – Knowledgeable and experienced in fish gathering methods.

These fishermen understand the need for information during these economic times. They are gathering more facts and data to make informed decisions. They calculate their return on investment from each advertising source and base their budget on the results. These companies understand the need to continue their advertising presence so their customers are aware they are still in business.

These companies understand the need for effective budgeting. They have calculated what they need to do and have made corresponding decisions to effectively steer through the recession.

Experienced Anglers – Grab The Net!

These fishermen throw away the fishing pole and grab the net! These companies know that many of their competitors are closing their doors. They have a successful operating plan and sufficient knowledge to jump on opportunities that arise. They have tracking systems in place to monitor effective advertising solutions and have now increased their marketing presence in both Creative & Directional advertising arenas to capture the fish their competitors are losing as their boats sink.

• These companies are the industry leaders and will dominate through a recession. They believe the recession is a blessing and will emerge even more success than they were when the recession started.

Now is the time to throw away your fishing pole and Grab Your NET! The market share your competitors are leaving behind is yours for the taking as long as you effectively utilize your marketing strategies and budgets. I believe we all concur that during this recession many companies will close their doors and a large number of companies will choose to wait to begin new projects. This is already evident with the significant decrease in new business license requests which is occurring nationwide. Take time to educate yourself and capitalize on the advertising media that is providing the maximum return on your investment. You may also wish to meet with an advertising consultant who can help you create an effective plan for netting the big haul!

Good Luck and Happy Fishing!

~Author J.J. Ulrich~

Executive Business Consultant

www.linkedin.com/in/jjulrich