Demand Creation in a Down Economy.

If I can’t measure the effect on my bottom line, should I stop B2B advertising in a down economy?

Maybe there’s a better question… and a better answer.

Almost any significant expense is certainly a very important issue in times like these. And the ability of advertising to help grow sales in difficult economic times is a question many marketers are asking (and are being asked by senior management). But perhaps it’s not quite the right question to be asking.

Here’s why: In B2B marketing, advertising can play different strategic roles, and being the sole cause of a sale is rarely one of them. There are plenty of reasons for this:

• B2B sales are generally more complex;
• Distributors, dealers and agents often are the ones actually making the sale
• Relationships need to be established and nurtured—often for years—to sell expensive, complex products and services
• … and the list goes on.

Taking the state of the economy out of the discussion for a minute, advertising is a tool to help companies reach specific strategic objectives. This is really the first issue. So, if advertising is determined to be a valuable, contributing part of the marketing mix, then its role should not necessarily be diminished in difficult economic times.

Now back to the point: should I stop advertising in a down economy if I can’t link the investment to actual sales?

Take this sentence and substitute a different word from your marketing portfolio for “advertising”. Should I stop: selling, innovating, launching new products, enhancing my website, attending trade shows, developing compelling sales literature (print and/or online), sending targeted direct mailings, developing distributor promotions, getting closer to my customers and prospects? Of course not.

All of these strategies, including advertising, are part of the marketing arsenal of demand creation activities that will help you and your business grow in a tough economy. As the saying goes, “It’s impossible to cut your way to greatness.” In tough times, new business and increasing market share (even if it’s a bigger share of a smaller market) are the keys to success.

So rephrase the question, because it’s not just about advertising (or trade shows or any other individual item). Perhaps we should be asking the question: What are the best demand creation activities that we can leverage to support our strategic business objectives and grow our business/market share?