Media are broadly reporting that a recession is coming in 2023. As stated in a recent Bloomberg article, “It may be one of the most anticipated recessions of all time …”
Given the pending economic downturn, CMOs and marketing professionals must consider adjusting strategic marketing and communication activities to effectively manage their company’s reputation and build trust amid these headwinds.
An economic recession can have several impacts on B2B marketing. It’s generally not recommended that B2B companies completely cut public relations activities during a recession. PR can still play a crucial role in helping a business to maintain a positive reputation and build trust with customers, stakeholders and other target audiences.
That being said, reviewing the overarching PR strategy and adjusting activities to maximize resources during a recession may be necessary. This could include prioritizing certain PR activities over other marketing activities or identifying more cost-effective ways to reach target audiences – perhaps focusing on earned media instead of often more costly activities such as tradeshows, events and paid placements.
Marketing professionals should consider some ways in which a recession can impact PR, including:
- Heightened scrutiny: During a recession, businesses may face increased scrutiny from executives, shareholders and other stakeholders. It’s important to be proactive in updating and revising PR plans to map to changing budget needs, demonstrate results and align with target audiences. By being upfront about your business’s challenges, you can build trust and show that you are responsible and proactive in the face of adversity.
- Shifts in customer behavior: A recession can lead to changes in customer behavior, such as decreased spending or a shift in purchasing priorities. Businesses may need to adapt PR strategies and messages to effectively communicate with their target audiences and demonstrate compelling benefits and value.
- Increased competition: A recession can lead to increased competition as businesses try to capture a larger share of a shrinking market. This can make it more challenging for businesses to differentiate themselves and can increase the importance of effective PR in helping businesses to stand out from the competition.
- Changes in the media landscape: The media landscape can also change during a recession, with some outlets facing financial challenges or shifting their focus to cover economic issues. This can impact the reach and effectiveness of PR efforts and may require businesses to adapt their approach to media outreach, identify new outlets and foster new media relationships.
Overall, a recession can present many challenges, but by being proactive and adaptable, business leaders can effectively manage their company’s reputation and build trust with stakeholders. By carefully reviewing your strategy and being adaptable, you can continue to use PR to maintain a positive reputation and build trust with your stakeholders.