The High Cost of Stopping and Restarting Marketing
The Ehrenberg-Bass Corporate Sponsorship Program conducted research to explore the impact of halting marketing efforts on brand performance. Their findings reveal a stark reality: when brands stop advertising for a year or more, they often experience significant declines in sales.
The Impact of Halting Marketing
The impact of stopping and restarting your marketing efforts can be a is a costly mistake. The mistake of not remaining visible and maintaining consistent communication with the most important element of a successful business - your customers and referral partners.
Sales Decline: The research shows that when brands cease marketing for a year or more, sales typically decline year-on-year. On average, sales fell by 16% after one year and by 25% after two years. This decline is a clear indicator that continuous marketing plays a vital role in maintaining brand visibility and customer engagement. Without regular marketing, brands risk losing their presence in the market, leading to decreased sales and profitability.
Faster Decline for Already Declining Brands: Brands that were already experiencing a decline before stopping their marketing efforts see the fastest rates of decline. For these brands, halting marketing accelerates their downward trajectory, making it even harder to recover. The lack of marketing exacerbates their existing challenges, leading to a rapid loss of market share and customer loyalty.
The Role of Brand Size
Brand size also plays a significant role in the impact of stopping marketing. Smaller brands typically suffer greater declines than larger brands when they stop marketing. This is because smaller brands rely more heavily on continuous marketing to build and maintain their market presence. In contrast, larger brands often have a more established customer base and have a larger operational budget to weather short-term pauses in marketing better than their smaller counterparts.
Growth Trends for Large versus Small Brands
The research highlights a crucial difference between large and small brands regarding growth trends after stopping marketing. Bigger, growing brands tend to continue growing for one to two years after ceasing marketing. However, this growth is not sustainable in the long term, and the sales trend eventually reverses. On the other hand, small growing brands experience a quick reversal in their sales trend almost immediately after stopping marketing.
The Cost of Stopping and Restarting Marketing
Halting and then restarting marketing efforts is not only detrimental to sales and brand positioning, but also expensive. Here are several reasons why:
1. Loss of Momentum: When marketing stops, brands lose the momentum they have built over time. Restarting marketing requires significant effort and resources to regain that momentum and re-establish brand visibility.
2. Increased Costs: Restarting marketing often involves higher costs than maintaining continuous efforts. Brands may need to invest more in marketing to recapture their lost audience and market share.
3. Customer Perception: Inconsistent marketing can negatively impact customer perception. Customers may perceive brands that stop marketing as less reliable or less relevant, leading to decreased loyalty and trust.
4. Competitive Disadvantage: Brands that stop advertising provide their competitors with an opportunity to capture market share. Competitors who maintain consistent marketing efforts can strengthen their position and attract customers from brands that pause their marketing.
5. Long-Term Damage: The long-term damage caused by stopping and restarting marketing can be substantial. Brands may struggle to recover their previous market position and may face ongoing challenges in rebuilding customer relationships.
How to Plan of Continuous Marketing
A continuous marketing climb is essential for maintaining brand visibility, customer engagement, and market share. Here are some key ideas to incorporate into your marketing planning to prioritize your consistent marketing efforts:
1. Brand Recall: Regular marketing helps keep the brand top-of-mind for consumers. Consistent exposure ensures that customers remember the brand when making purchasing decisions. Paula Mattisonsierra of Power Marketing SF advises, "If your business is fortunate enough to have more service or product requests than it can handle, consider reducing the volume of your marketing efforts, but never eliminate them. Additionally, this indicates it's time to improve your operations."
2. Customer Loyalty: Continuous marketing fosters customer loyalty by reinforcing the brand's presence and messaging. Loyal customers are more likely to stick with a brand that consistently communicates with them.
3. Market Presence: Maintaining a consistent marketing presence helps brands stay competitive in the market. Brands that continue marketing can adapt to market changes and respond to competitors effectively. The team at Power Marketing SF suggests that "Stopping and restarting your marketing efforts creates great referrals for your competition."
4. Sales Growth: Continuous marketing supports sales growth by driving customer awareness and interest. Brands that maintain their marketing efforts are more likely to see sustained sales growth over time. Focusing on continuous marketing will additionally, eliminate the peaks and valleys which occur when a business stops and restarts marketing efforts.
5. Cost-Effectiveness: While continuous marketing requires ongoing investment, it is often more cost-effective than the expenses associated with restarting marketing efforts. Brands that maintain their marketing momentum can achieve better returns on their investment.
For businesses aiming to achieve long-term success, maintaining consistent marketing efforts is essential. By prioritizing continuous marketing, brands can enhance their visibility, foster customer loyalty, and drive sustained sales growth. Remember, stopping and restarting your marketing efforts is expensive and can have long-lasting negative effects on your brand's performance; particularly for smaller brands. Stay committed to your marketing strategy and ensure your brand remains competitive and relevant.
Author: Paula Mattisonsierra is an award-winning consultant and the Founder & Fractional CMO of Power Marketing SF, offering marketing services that allow you to focus on running your business.
תגובות