The UK is heading into recession, this time with nasty inflation to boot. The Bank of England predicts the longest recession in the country's history and consumer confidence is lower than in the first year of the coronavirus pandemic. Meanwhile, the UK will not be the only economically advanced country; the United States is also heading for recession, although it is expected to be milder than in Europe.
"This is likely to be the most severe recession we have seen yet, surpassing even a pandemic crisis. When I visited the UK recently after three years, I felt that the atmosphere in the country was very negative, I had never experienced that before. I attribute this to the aftermath of Brexit, the covid, the chaotic political situation, the death of the Queen and the onset of recession," calculates Mark Ritson, brand consultant and creator of the Mini MBA in Marketing course, and continues, "All the data shows that consumer sentiment is much more pessimistic now than it was during the covid."
WHAT MARKETERS NEED TO PREPARE FOR?
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Mark Ritson's strategy is to maintain consistent communication and existing brand messages during the crisis. "While a change in communication is of course possible, I would be more concerned about it. Personally, I like long-term brand communication that lasts perhaps more than 10 years," says Mark Ritson.
A FEW TIPS:
A recession should never be celebrated - as well as the economic costs, it brings great human loss. But neither should it be a source of fear for CMOs, who should be focusing their thoughts and activities on the subsequent market recovery. Marketers have resources where they can draw insights and advice on what works and what to do. But it takes conviction, strong arguments and hard work to make it work.
As the late great Formula One driver Ayrton Senna said:
"You can't overtake 15 cars on a sunny day... but when it's raining, you can."
Just as a wet racetrack separates the exceptional drivers from those merely blessed with a fast car, recession often creates a line between the strong, well-driven brands and a group of their (pro)followers.
So how does Mark Ritson sum up his advice in conclusion. Companies that are doing well and doing it right are not afraid to innovate, are open to new stimuli and do marketing well. Advice one is learn from the successful, advice two - invest in marketing. Investing in marketing is essential during a recession because it will help you gain a competitive advantage at a time when the overall market is shrinking. So even maintaining your current level of investment means you'll increase your share of voice faster - and this will pay off over time by growing your brand in the market.
Source: System1.
