– the buzzword of the first quarter of 2020! It seems everyone is talking about it; Be it streets, offices or at home, facts and figures are being discussed. Clearly, the focus is and should be on the containment of the virus and mitigating the further spread of the infection.
But here one major aspect that can’t be missed: The Economic one.
Keeping in mind the number of countries and states announcing lockdowns, global economy is next after humans in bearing the brunt. According to UBS, “Only 0.0056% of its population is confirmed to be infected. But the severity of its containment efforts will, by our estimate, take 15 percentage points off its Q1 growth rate.”
Moreover, the information, understanding, and reactions are quite ambiguous leading to further confusion among companies and brands.
The outbreak has pushed the global economy into a survival mode; during such times, not taking the accurate measures could be an issue. Whenever a disaster hits, companies and consumers become wary about their money and assets.
This is a pattern that can be observed throughout the course of history. As a resultant, businesses are narrowing down cost cutting measures and marketing budget is usually the first one to go under the knife.
Now, if consumers are not buying, why to advertise, right? No, definitely not right! Halting the communication at the time of crisis, when the consumers are not ready to spend money, more often than not, will result into brand being the talk of the past. For any marketer, the main goal is brand equity, and when any business stops working toward it, they are on a suicide mission.
At this juncture, business have two options to go with.
Out of both, the first one is to slash the marketing budget, halt the audience communication process, and wait for the disaster to be over before starting afresh with new strategies. Businesses going with this option may face the possibility of becoming obsolete simply because they stopped the communication. Not all industries or companies, for that matter, would be stopping or halting their operations and communications. This would be a goldmine for your competitors as they will have one less player. For any brand, instant recall is the foundation, and terminating communication processes is in direct contradiction with the foundation.
Now comes the second option: to devise a strategy through which you can connect with your customers while finding innovative ways to maintain the conversation and keep their spirits up during such tough times. The brands that will focus on this strategy while putting in efforts will find it easier to cope with the current economic crisis as the audience will relate with them and their message. The efforts poured during the time of crisis will fetch rewards once its over. And it will be over!
With coronavirus impacting experiential marketing the most out of all, decreasing or stopping marketing efforts sounds like a viable option. However, this is the perfect time to turn the tide. All it takes is to understand the challenge and find out ways to shift the communication process and budget towards strategies that are in accord with the circumstances. The feat can be easily accomplished by:
This coronavirus crisis has a silver lining to it; all it takes is a partner like NVISH who can help you devise and strategize your communication plans.