3 Facts on How to Avoid Economic Downturns
During this economic downturn, many company’s sales have probably decreased. Businesses are looking to lower or totally cut out expenses of all kinds including payroll, marketing and non-essential costs.
Fact #1: A study conducted by McGraw-Hill Research of 600 companies, showed that the businesses that made the effort to continue or expand their advertising efforts during the recession period, actually maintained or incurred increased sales during and after the recession compared to those companies who did not maintain or increase their marketing efforts.
Fact #2: Six studies were conducted by the research firm of Meldrum & Fewsmith that showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. The American Business Press studies also support these findings. This fact has been true for all post-World War II recessions.
Fact #3: A study conducted by Pearce II and Michael in 1997 showed that there were 3 components that determined success in recessions. 1: Increasing investment in sales, customer service and marketing/advertising. 2: Increasing the breadth of production and products offered. 3: Increasing the geographical coverage.
Studies conducted by Bigelow & Chan in 1992 and Geroski & Gregg in 1996 showed that the causes to companies failing in a recession are cash flow issues as well as cutting back on customer service levels and marketing investment.
Studies conducted by PPAI Association that conducts market research including promotional products as an advertising/marketing medium found that:
• Customers who received promotional products reordered up to 18% sooner than those who
received coupons and up to 13% sooner than those who received no promotion.
• Customers who received promotional products also averaged up to 18% more orders than those receiving coupons and up to 13% more than those who received nothing.
• In summary, customers who received promotional products reordered more quickly and ordered more often than those who received no promotional products.
Promotional Products furnish advertisers with advantages that may not be available in other media. These include:
• High recall where the name of the advertiser is remembered.
• Repeated exposure to the advertising message because of length of time the item is kept.
• A more favorable impression of the advertiser, resulting in a propensity to do business with the organization giving the promotional item.
Personalized promotional products can provide key elements to an advertising campaign and enhance opportunity for driving a message far beyond traditional media.
Custom printed promotional items have a positive impact on brand image. Specifically, when comparing people who receive a custom printed promotional product from a company with others who do not, this research shows that people who receive a promotional product such as promotional computer mouse pads, have a significantly more positive opinion about a business through:
• More positive overall image
• More positive perception of the business
• Higher likelihood of recommending the business
• Higher likelihood of patronization
john gallagher CAS-promotional consultant for the promo shop, ltd for over 11 years view other articles and the effective uses of promotional products and corporate apparel by clicking onto:
http://www.thepromoshop.com
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