In the high-stakes oil and gas industry—and in those numerous verticals that service them—differentiating your company from the competition is an ongoing challenge. The pressure to outperform market leaders and consistently deliver excellent ROI is especially intense. Navigating the constant fluctuations in the industry, market dynamics and competitive activity in oil and gas exploration and production allows no margin for error in flawed decisions or complacency, both of which waste valuable time and money.
Ironically, when the economy falters the first components cut by many companies are the marketing and advertising budgets— and they are also the last areas to be restored in an economic upturn. This is tantamount to a declaration of a company’s extinction as an earnest player in their industry. The removal of a company’s brand and value proposition seriously undermines its stability and credibility as a contender in the public arena: out of sight, out of mind.
Studies prove that those visionary companies that increase their marketing initiatives during a downturn will increase sales, profits and market share— even when the economy has slowed dramatically. A report from researchers at the University of Texas at Austin and Pennsylvania State University found that “firms that invest aggressively in marketing send a reassuring signal of confidence to concerned customers about their staying power and provide an incentive for customers to switch from brands/firms that they perceive as weak.”
McGraw-Hill Research’s Laboratory of Advertising Performance reported in 1985 that B2B firms that maintained or increased their advertising budgets during the deep recession in the early 1980’s enjoyed a significant increase in sales growth over companies that pulled back their marketing resources during this challenging time. The visionaries that recognized the intrinsic value of their investment in a strategic and compelling marketing campaign, realized continued growth in the ensuing three years. It is worthy to note that those firms who maintained or increased their advertising allocations during that period witnessed an average sales growth of 275% over the preceding five years.
What we know for sure: the firms that recognized the value in maintaining or increasing their investment in branding and advertising initiatives were better positioned to capitalize on the inevitable activity that always accompanies a market rebound. Refreshing and reinforcing a company’s brand during challenging market conditions—when so many are pulling back— actually provides the firm with greater exposure as there is less noise in the marketplace as well as showcasing their strength and staying power.
Savvy companies choose to make use of strategic initiatives to increase their sales and boost their market share. A targeted marketing campaign will not only help a company weather challenging economic times; it will position the company for even greater growth during the recovery.
At CMS, each of our clients has their own distinct culture and personality. We always seek to capture the unique characteristics that differentiate you from your competitors and create materials to best position you and your products and services in the marketplace. Get the answers you need, insights that deliver real value, and a platform to lead your company beyond the competition and ahead of market expectations.
CMS / Creative Marketing Services: Your Silent Partner in Success. Call CMS to schedule your consultation today.