The decision to invest in digital marketing as the economy evolves upwards is easily grounded by companies based on numerous and attractive market opportunities. But how about companies facing the challenges of a recession? Should they also invest in digital marketing? Are marketing expenses legitimate if cost reduction becomes a priority? According to GFF leaders, certainly yes, although companies need to become more creative and innovative in order to identify ways to cope with the economic downturn and financial constraints.
In consumer goods markets, marketing strategies need to be reviewed to find the best opportunities to maintain the company’s place.
An example of a successful marketing strategy during the economic downturn was offered by BMW in the UK, in 2010. The car market was highly competitive, and the BMW brand had to protect its position – its main competitors being Audi, Mercedes-Benz and Jaguar. The causes of the market success were multiple:
- Low focus on price, during communication campaigns
- Re-evaluation of the advertising services provider
- Transparent strategy towards “stakeholders”
- Differentiated targeting strategy
- Integrated marketing communication
Another company that has successfully tackled the recession is German-based discounter Lidl, on the Scottish market. The marketing strategy consisted in the efficient management of distribution and logistics costs.