Advertising...When To Say When

There are many theories involving advertising. Do you advertise for the sake of branding or do you advertise a strong selling message? What do you do in an up market and what do you do when the market dries up?

Much of this depends upon the product you are selling and what your overall goals are for your business.

Many businesses today, due to the economic turndown, are dialing back on their advertsing in hopes of saving a profit. This rarely works. You should definitely be as prudent as possible, but don't stick your head in the sand.

Let's take a look at a particular segment, the automotive industry. If ever there was an industry in financial trouble today, it would be automotive. Automotive advertising is one of the more difficult sales to be made with the current economic climate. Many manufacturers are suffering greatly on the balance sheet. Chrysler and GM have been seeking bailout funds from the federal government in order to stay afloat.

With the large profit margins available on cars, the advertising dollars, if spent wisely, still warrant being spent.

Industries that rely on high volume and moderately expensive merchandise have the toughest descision. In tough times, it is sometimes very difficult to find enough buyers for moderately expensive merchandise. Jewelery stores, as an example, face these types of descisions on a weekly basis.

The safest industry would be that of the essentials. Grocery stores and pharmacies offer up necessities rather than the luxury items that require expendable income. Continual advertising in these industries requires less thought or leaps of faith.

The bottom line is this. In a market as choppy as this one, advertising still needs to be part of the overall business plan for any business that wants to stay ahead of the curve.