“In times of economic crisis, many consumers reevaluate their relationship with brands, ”noted Pablo Fernández—who holds a Ph.D. in Marketing and is a sociologist specializing in customer portfolio management—during the online conference “Effective Marketing: The Best Vaccine Against the Crisis,” which was part of the Management and Business Lecture Series organized by the Graduate School of Business at Universidad ORT Uruguay.
During the event, which took place on Friday, June 5, 2020, presentations were given by Fernández and Juan Pablo Carrero—who holds a Ph.D. in Economics and Business Administration, is a sociologist, and specializes in brand value measurement, marketing effectiveness, and data-driven marketing. Both are partners at the consulting firm MarketingTech.
Marketing Measurement
“Marketing must be measurable. Especially during a recession, it is important to demonstrate how this discipline contributes to the company’s profitability,” Fernández said.
During times of crisis, marketing budgets tend to be cut, as do prices, the range of options, and the quality of service and customer support. Companies shift their focus to driving sales through promotions and special offers.
“We have to make sure that the measures we take during the recession don’t hinder our recovery after the crisis,” said the expert. In that regard, Fernández recommended keeping in mind that people don’t tend to buy the cheapest option, but rather the most convenient one. He explained that lowering prices due to a crisis can erode the perception of a product’s value. Once prices are lowered, “it’s difficult to raise them again.”
According to the expert, it is also important to note that subscription models are currently on the rise. In other words, companies that, rather than focusing on one-time product sales, offer multiple products under a single subscription, as Netflix and Spotify do.
Marketing Management
“This is an exciting time for marketing and big data analysis. Today we can measure far more than we could 20 or 30 years ago,” Carrero explained. However, he noted that the effectiveness of marketing campaigns is on the decline. According to the expert, one of the main causes of this is the strong focus on short-term results.
“There are two key factors in maintaining marketing effectiveness. This applies both in normal times and during a crisis. On the one hand, it is essential to maintain sales levels. On the other hand, it is important to protect the brand, ”said the expert.
Carrero pointed out that, in times of crisis, corporate investment in communications tends to decline. In a sense, this amounts to “turning off the brand.” While this is done to cut costs, it often has negative repercussions. “The damage to brands is tangible, and it takes time to recover.” In that regard, the expert recommended “maintaining a presence”during times of crisis.
“Unfortunately, during crises, we tend to lose our balance. We often end up investing too much in tactics that don’t generate the returns we’re really hoping for,” said Carrero, adding: “What we’re selling today is thanks to the brand we’ve built up until now. Effective marketing during crises means taking both the short and long term into account.”