We are all faced with the current economic crisis and the uncertainty of what the future may hold. Will the economy worsen? Are we headed for another Great Depression? I would like to remind everyone that the Great Depression was not bad for everyone. Let's look at some of the companies that not only survived but made great economic advances during the Great Depression.
During the Great Depression several companies took an aggressive approach to marketing while their rivals did not. Consumers didn't totally stop spending during the depression, they just looked for better deals. After the Depression ended and spending picked back up the consumer loyalty to those companies remained.
Those companies who not only survived and grew during the Great Depression are those who continued to as though there were nothing wrong and that the public had money to spend. These companies advertised and they didn't wait for public demand for their products, they created that demand. Because so many companies cut spending during that era, advertising budgets were shrinking in many industries. Many of these companies actually dropped out of public sight and these advertising cutbacks caused many customers to feel abandoned and associated the effected brands with a lack of longevity and staying power. When these companies became less visible consumers opted for the more visible brands and these actively advertising companies were able to survive.
Now, looking back at history it is clear that the companies who demonstrated the most growth and were those who advertised continuously and heavily.
Proctor and Gamble - This is a company which has a philosophy of not reducing advertising budgets during times of recession and they certainly did not make any such reduction during the Depression. While their competitors were cutting advertising costs, P&G actually increased their spending.
Chevrolet - During the 1920s, Fords were outselling Chevrolets by 10 to 1. Chevrolet continued to expand its advertising budget and by 1931, the "Chevy 6" took the lead in its field and remained there for the next five years.
Camel Cigarettes - in 1920 Camel was the top selling tobacco product. American Tobacco Company then struck back with the Lucky Strike brand and by 1929 Lucky had overtaken Camel as the number one brand. Two years later in the heart of the Depression, Chesterfield also overtook Camel. Camel countered with a massive increase in advertising spending and by doing so demonstrated the power of advertising during depressed times. By 1935, it was back on top.
The companies that took advantage of the Depression and survived were those who kept their names in front of the public despite the lack of money many people at the time had to spend. We must always remember that even in the worst economies there are always people who have money to spend. Focusing your efforts on marketing to those people who either need or want your services is more important now more than ever!
For more information about marketing and advertising in a tough economy contact Summit Creative: contact@summitcreative.net
During the Great Depression several companies took an aggressive approach to marketing while their rivals did not. Consumers didn't totally stop spending during the depression, they just looked for better deals. After the Depression ended and spending picked back up the consumer loyalty to those companies remained.
Those companies who not only survived and grew during the Great Depression are those who continued to as though there were nothing wrong and that the public had money to spend. These companies advertised and they didn't wait for public demand for their products, they created that demand. Because so many companies cut spending during that era, advertising budgets were shrinking in many industries. Many of these companies actually dropped out of public sight and these advertising cutbacks caused many customers to feel abandoned and associated the effected brands with a lack of longevity and staying power. When these companies became less visible consumers opted for the more visible brands and these actively advertising companies were able to survive.
Now, looking back at history it is clear that the companies who demonstrated the most growth and were those who advertised continuously and heavily.
Proctor and Gamble - This is a company which has a philosophy of not reducing advertising budgets during times of recession and they certainly did not make any such reduction during the Depression. While their competitors were cutting advertising costs, P&G actually increased their spending.
Chevrolet - During the 1920s, Fords were outselling Chevrolets by 10 to 1. Chevrolet continued to expand its advertising budget and by 1931, the "Chevy 6" took the lead in its field and remained there for the next five years.
Camel Cigarettes - in 1920 Camel was the top selling tobacco product. American Tobacco Company then struck back with the Lucky Strike brand and by 1929 Lucky had overtaken Camel as the number one brand. Two years later in the heart of the Depression, Chesterfield also overtook Camel. Camel countered with a massive increase in advertising spending and by doing so demonstrated the power of advertising during depressed times. By 1935, it was back on top.
The companies that took advantage of the Depression and survived were those who kept their names in front of the public despite the lack of money many people at the time had to spend. We must always remember that even in the worst economies there are always people who have money to spend. Focusing your efforts on marketing to those people who either need or want your services is more important now more than ever!
For more information about marketing and advertising in a tough economy contact Summit Creative: contact@summitcreative.net
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