Oftentimes the things that get cut during a downturn are advertising, training and other items like ‘research and development.’ But is that truly a wise strategy?
Chevrolet, Proctor and Gamble (P&G) and the cigarette company wars during the depression era demonstrated time and again the power of advertising in a down market. Those firms and others who shewdly invested more in ads, repeatedly advanced past their rivals.
Ford’s Model T revolutionized the automobile market. But copious and shrewd advertising by Chevy
helped them pass Ford in sales during the depression era.
“A man who stops advertising to save money,
is like a man who stops the clock to save time.” – Henry Ford
In today’s challenged economy, McDonald’s is one of the biggest advertisers, and they are also the runaway leader (and are profiting) in their niche of the food service (restaurant/fast food) industry.
During the recent sizable boost in business for Black Friday, didn’t you see a strong pre-sales launch, online, in print and other broadcast mediums? Do you see a direct correlation between ads/marketing and those Black Friday rise in sales?
Turning to our own manufactured housing industry, Is it a coincidence that Clayton Homes is #1, and that they too invest more in ads and marketing (online, print, signage and broadcast) than their rivals? To be sure, there are other factors that make Clayton Homes the Industry’s leader, but the point is that time and again smart advertising and marketing pays off with a good return on investment.
One key is the word ‘smart.’ This is not about just tossing dollars at ads, and hoping for growth. You have to have a sound, complete plan and then execute it. You have to line up the people/talent and resources needed to advance your firm. See the check list for planning in today’s Masthead blog post. # #
post written by
L. A. ‘Tony’ Kovach
http://www.linkedin.com/in/latonykovach
tony@mhmsm.com or phone 815-270-0500