Preparing for a New Economy with Brand Advertising

At a time when most companies are reducing marketing budgets and discounting the value of brand advertising to instead focus on immediate retail ads that result in short-term, meager profits, a few key leaders are making strides by expanding their brand marketing to ensure they are ready to dominate the new economy. Their strategy is to wait out the current recession and use the lull in activity to re-position their brands – making sure that when the economy bounces back, their companies are at the forefront in brand awareness, image, and positioning. FedEx, General Electric, and IBM are a few of the major players in this new resurgence for brand advertising, with Walmart, Procter & Gamble, and Unilever now planning to follow suit.

When money gets tight, marketing budgets are the first thing to get cut because it is the hardest thing to justify; however, CMOs are now realizing that past efforts have only resulted in short-term results. Brand advertising positions the company for long-term growth, which may be a better strategy for companies struggling in today’s economy. As SAP Global Chief Marketing Officer Marty Homlish explained, “At times of uncertainty, companies need to reassure the market that they are stable, reliable and have a long-term vision.”

Values and Trust Don't Go Out of Style

Every day we hear how companies are falling apart due to the economic situation. However, there are also companies out there that are able to succeed and grow in these bad times. How do they do it? A big factor comes down to the company values.

It’s about the principles and values that companies have always used to run their business. The most successful companies are the ones who have established a foundation of trust and from there were able to build a strong brand and reputation.

What can companies do to ensure their brand and reputation stays strong during an economic downturn?

Define your values to serve as a guideline to help employees to stay on track. Determine what the company stands for and communicate this to everyone in the organization and how they can play an important role. Examples of strong corporate values are: treat people fairly, be honest, give back to the community, strive for excellence and hire talented people.
After defining your values – execute your values. Companies should be consistent in the way they treat employees and interact with their customers regardless of external pressures. Consistency is what is going to build trust.

No business is immune from the effects of the economy, however it can still exceed with a strong brand and reputation that consistency performs their competitors in good times and bad.

Begin by asking yourself…
What values do your company believe in?
What values is the company weak in, and should probably adopt in the future?
How are you going to adopt these values throughout the company? Are you really committed to adopting them? Who will be in charge of adopting them?

Content is still king

Digital media, social media, online marketing, websites, emails, blogs, twitter, forums, facebook. One thing that is constant in all of these is content. So many people worry about scene or heard online but do not give any thought to what they want to say or present. Before anything is decided; it is important to come up with a strategy, then define what you want to communicate, then determine the delivery mechanism, then the follow up. The easy part is jumping into social media, the hard part is making it work. This is where content is king. No only is it important in communicating a clear message, but in also using it to convey a position or differentiation. It is key to driving a targeted audience to a belief or action. All content should lead to a position or to an actionable item. So yes, online is the wave of the future but the written word is still critical to success.