During tough times, it’s easy to make the mistake of cutting back on advertising and marketing. However, this could be a big mistake that could lead to a decline in sales. Recently, Gucci learned this lesson the hard way when it cut back on advertising only to experience a slump in sales, says the Wall Street Journal.
As an entrepreneur, the last thing you want to do is to make this marketing mistake. In this blog post, we will discuss why you shouldn’t cut back on advertising and marketing during tough times and instead learn from Gucci’s mistake.
In hindsight, Kering’s decision to slash its ad budget early in the pandemic to protect profit margins was a mistake. Powerful rivals that took the opposite approach and spent heavily on marketing won market share.
Advertising is essential for brand awareness
The main reason why you should never cut back on advertising is that it’s essential for brand awareness. When people are cautious about their spending during tough times, you want them to be aware of your brand and the products or services you offer. Advertising allows you to get your brand in front of your target audience, ensuring that they remember you when they are ready to purchase.
Cutting back on advertising can lead to a decline in sales
As mentioned earlier, Gucci experienced a decline in sales after cutting back on advertising. This is because advertising leads to more sales and without it, you risk losing customers to your competitors. Your competitors are most likely continuing their advertising efforts, and you don’t want to fall behind.
Advertising makes your business appear stable
During tough times, people want to buy from businesses that appear stable and reliable. Advertising ensures that your business appears that way by showing that you have the resources to continue marketing your products or services. This gives customers confidence in your business and helps them feel safe in buying from you.
Advertising leads to an increase in market share
When your competitors cut back on advertising, it’s the perfect time for you to increase yours. By investing in advertising during tough times, you can take advantage of your competitors’ mistake and increase your market share. This not only leads to more sales but also helps your business grow and succeed in the long run.
Advertising builds customer loyalty
Advertising isn’t just about getting new customers; it’s also about keeping your existing ones. By continuing to advertise during tough times, you’re showing your loyal customers that you’re still there for them and that you’re committed to serving them. This builds customer loyalty, which can lead to repeat business and referrals.
In conclusion, as an entrepreneur, you should never cut back on advertising and marketing during tough times. Advertising is essential for brand awareness, leads to an increase in sales, helps your business appear stable, builds customer loyalty, and leads to an increase in market share. By learning from Gucci’s mistake, you can ensure that your business continues to grow and succeed, even during tough times. So, don’t cut back. Keep investing in advertising and marketing to ensure that your business stays on top.