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Updated Oct. 14, 2024-
Resilient companies thrive through a pandemic in our incentive-driven economy.
Why? Those businesses craft a better approach enroute to making profits.
That’s what we learned after COVID.
Reviewing history
For a perspective, it helps to review history. Not surprisingly for a billionaire businessman turned president, you might recall the Trump Administration helped get millions of Americans back to work after the shutdown from the fast-moving pandemic.
President Trump knew the U.S. has always been an incentive-driven economy. Indeed, investors are still motivated as evidenced by the roaring stock market.
“I would say, without question, it’s the biggest decision I’ve ever had to make,” Mr. Trump said at a White house news briefing.
Like everybody else, he knew if the economy reopened too soon — before sufficient progress is made against the coronavirus — preventative measures will stop, and the health nightmare will continue and worsen.
Despite Mr. Trump’s success in getting vaccines developed, infections surged much higher under the Biden Administration.
Media revenue
Revenue plummeted for the media.
Four media organizations — America’s newspapers, National Association of Broadcasters, National Newspaper Association and the News Media Alliance — lobbied for $5 to $10-billion relief in tax dollars.
They wanted to be included in the Paycheck Protection Program and for the government to spend more money with them in advertising.
Marketing decisions
On a micro-level, marketers had the same dilemma. The pandemic presented the most-challenging environment of their careers.
Historically, never have conditions changed so fundamentally.
Ordinarily in uncertain economies and recessions, the secret to success is to expand marketing.
But the coronavirus was different than other downturns. Marketers risked the appearance of being tone-deaf when so many Americans have died. Countless others had financial and/or health concerns.
So marketers had to contemplate what to decide: Creating the right messaging at the right time or do nothing.
Here’s a checklist of history lessons:
1. Click the mute button
Early in my journalism career, I learned something about human nature during disasters. Whenever there was an airplane crash, the airlines immediately pulled their advertising.
But some advertisers appeared to be tone-deaf in the minds of consumers. For instance, they’re circulating print ads and coupons that seem sorely out-of-place.
Sensitivity and compassion are still important.
How is this possible? Unfortunately, many advertising campaigns are machine-operated by algorithms.
To avoid appearing gauche, out-of-touch or even mercenary, certain companies like funeral-homes, should consider canceling their advertising.
Others should evaluate their campaigns and options, and then quickly cancel their irrelevant advertising if they couldn’t quickly change their messaging.
2. Reassess the environment and marketing investments
Some sectors and businesses raked in the cash, especially security-related products and services such as health, insurance and guns. Some have profited from marketing and others haven’t had to advertise.
Some have changed their business models and have been surviving — barely. Even a restaurant that’s switched to a take-out model experienced a 50 percent or more decrease in revenue.
Other businesses have too few or no customers. Surprisingly, even luxury brands have suffered.
Their decision was whether to invest in marketing to turn their businesses around or to wait until the economy has fully reopened for good.
How Marketing Makes Corporate Social Responsibility Profitable
A lot depends on the sector. For example, for a hospitality company to spend advertising dollars can be futile. That’s true, too, for the airlines. Their planes were 50 percent empty until the economy improved.
Many affluent consumers were not been inclined to travel in the era of stay-at-home mandates and 14-day quarantines upon arrival in certain regions.
Therefore, the only option for many brands is to conserve cash, and anticipate their odds and situations when the economy returns to normal.
3. Review messaging
For companies that are assertive, bold and confident about their chances, they need to evaluate whether their messaging is apropos and timely — in other words, relevant for the times.
Such marketers must be intuitive to understand their marketplaces and human nature. They know to express an empathetic, serious and inspirational tone.
Throughout all economies, my studies show that 52 percent of the average buying decision is determined by what the purchaser feels about a company’s spokesperson and employees.
Sales Success: Flawless ‘Brand Personality Appeal’ Is Vital
Two successful client examples from downturns that worked:
— One successful technique in TV commercials, my firm has shown employees of my clients in a positive light.
Viewers felt sincerity and empathy from a business with great employees on which they could rely. For example, one branding slogan was “Hometown Value. Hometown Service.” And the profit was substantial.
— To launch holiday sales, a toy retailer in promoting a Black Friday sale wanted a hard-driving campaign reminiscent of screaming auto-racing commercials. “No, no, no, please humor me,” I asserted. Instead, I suggested advertising copy that read:
“We understand what your family is going through. We know your budget is very tight but you want your children and grandchildren to … So just in time for Christmas, we’ve discounted the most-popular toys that kids love…”
By Sunday night, my client’s head had exploded — 99 percent of his inventory had sold in three days.
Many successful brands pay tribute to first-responders and health-care workers with poignant music. The risk for this type of messaging is that everybody will be doing it — it’s a predictable approach that will numb the average consumer.
Others utilize cause-related marketing. It improves their image and customers appreciate feel-good advertising.
If a marketer is leery, it would be best to suspend all advertising. That’s better than being perceived as mercenary or tone-deaf.
4. Look ahead
It’s important for marketers to be consistent and stable — to walk their talk — to have a brand purpose with values.
What they do now must be compassionate, and compatible with the messaging they’ll need to implement in future years.
They better not exhibit their appreciation for employees and then turn around and lay them off. Yet, a major broadcast employer has done just that (see Lives Are Shattered, Tips to Lay off Employees with Grace).
Meantime, sensitivity and compassion are still important.
From the Coach’s Corner, editor’s picks:
6 Best Practices for Your Cause-Related Marketing Program – Well-run companies are fully aware of their social responsibility. They know the value of investing in their communities. Cause-related marketing programs can, of course, accomplish two goals: Help deserving organizations increase revenue and propel your business to a profitable, stronger image.
Critical Essentials to Develop the Best Marketing Formula – There are critical essentials for marketing, which includes the right channels and developing the right message.
How You Can Best Profit from Word-of-Mouth Advertising, Customer Service – To increase your sales revenue with word-of-mouth advertising, here are 10 tips.
Marketing Checklist – Tips for Growth and Winning – Here are fundamentals in marketing, plus links to additional relevant information.
Trending – Digital Marketing to Meet Demands of Consumers – For long-term sustainable success in digital marketing to meet demands of consumers, be mindful of these trends and strategies.
“The medium is the message.”
–Marshall McLuhan
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