Maintain Marketing Pressure

 

 

 

 

Maintain Marketing Pressure

Several professors at the prestigious Wharton Business School recently offered a crash course on recession marketing.  Their recommendations:

  • Don't slash advertising - Companies that slash advertising in a downturn, leave empty space in consumers' minds for aggressive marketers to make strong inroads. They go on to cite a McGraw-Hill Research Study of 600 companies through the 1981-1982 recession that showed those that advertised aggressively had sales 256% higher than those that did not.

The way consumers learn and retain information probably hasn't changed much since 1982 so, when you are out of sight you are still out of mind.

What has changed drastically however is the way people consume media and access information.  Unlike 1982 where advertising meant TV, radio, magazines and newspapers, we are now living in a wired world.  As such hotels need to make sure their web sites are performing at peak efficiency, their search engine optimization program has them listed on the first or second page of keyword searches and they are using all the Internet tools as they fit within their marketing program to maximize visibility on the web.

  • Communicate value - During recessionary times people are looking to get the most value they can from every dollar they spend. Value, therefore is an important message to build into marketing campaigns in a downturn.

  • Create emotional appeals - This is especially important to marketers of luxury goods and services. They should use emotional appeals, emphasizing the need for emotional release or comfort in difficult times.

For years Las Vegas attracted customers by communicating it was a place to indulge oneself in extreme behavior.  Good strategy in good times - not a good idea today.  So the LVCVA has recently launched "Vegas Bound," a new campaign urging hard-working Americans to take a break so they can return home and be more productive - a much more emotional and relevant appeal.

In research more specific to hospitality, Deloitte's 2008 publication "Weathering the Economic Storm, How Hospitality Companies can Thrive in Challenging Times" explains how strengthening the marketing and sales functions could reduce the financial burdens of hospitality companies and lead to stronger customer relationships in the long run.

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