Fast Forwarding, Advertising in a Recession, and Dangers of Discounting

Here are some articles or posts that you might find informative.

Do We Process Skipped Commercials? Nueromarketing

In this post Roger Dooley discusses research that shows our brains do process fast forwarded commercials. Dooley points out that the group that viewed fast forwarded ads had a recall rate at twice the expected rate. Some advertisers are optimizing commercials for fast forwarding. Fast forwarding can also increase alertness because you are attentive to when your program returns says the author.

I think that our brains can recognize well known brands when they zip by, but the problem is that there is no brand messaging going on. This is about as effective as banner ads. However, when something interesting catches your eye it can get you to watch the commercial because you are actively viewing.

Brand Progression in a Recession Barry Silverstein

Silverstein argues that well established brands that represent both quality and value can actually benefit from a recession. A recession can weed out weaker brands. Trusted store brands can appeal to budget conscious consumers. A recession will force brands to communicate or find their brand soul. “It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.” said Harvard Business School professor John Quelch.

I think spending on marketing during a recession can put you in a dominant position over your competition when the recession ends. Many enduring companies have been born during a market downturn.

Discounting Your Prices Discounts Your Brand Marketing Profs Daily Fix

Paul Williams writes that discounting can erode your long-term margins and your long-term sales. Discounting re-calibrates the perceived value of your product or service. Sales can encourage customers to wait and only buy when there is a sale. Instead of discounting, consider add-on services or products.

This is good advice for avoiding devaluing your brand even when facing difficult time. Companies with regular sales often train customers to only buy during sales.

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