Success Through Familiarity: Advantages of Promoting Brand Awareness While Other Companies Go Dark

Since early 2019, businesses have weathered COVID, labor disruptions, and rising inflation, only to face the looming threat of a potential recession. Despite challenges and uncertainty, the economic turmoil presents an opportunity for businesses with the right marketing strategies to gain market traction and increase their market share.

This article looks at the economic conditions impacting businesses in 2023 and why crisis management veteran Karla Jo Helms of JOTO PR Disruptors recommends using disruption, exposure, and influence to fuel growth now and in the future.

The Great Resignation Was a Reshuffle

Will the Great Resignation and skilled labor shortages continue in 2023? In 2021, around 41 million Americans left their jobs. However, looking at this number alone doesn’t tell the whole story. Hiring rates have been higher than quit rates since November 2020. Many workers who left their jobs went to work for another company.

Both the unemployment and quit rates are down when compared to 2021. The availability of skilled labor does differ by industry. Manufacturing, retail, and hospitality still struggle to fill available positions, while those companies that can offer remote work options fare better.

Quiet Quitting: New Name, Old Problem

Less openly disruptive but problematic is “quiet quitting” or employee disengagement. As companies try to manage economic stress by cutting training and development, employee engagement goes down. The result of such seemingly cost-saving measures is about a 20% loss in productivity.

Lower engagement also increases the employee attrition rate since engaged employees are 87% less likely to quit. What makes this cycle unfortunate is the cost of hiring and training new employees exceeds any savings made by cuts in training and development.

Will We Escape Without a Recession?

Not all economic markers point to a recession. Gross Domestic Product (GDP), retail sales, and unemployment levels are considered acceptable. At the same time, inflation is high, and the stock market, housing market, and consumer confidence are low.

It’s possible the U.S. can avoid a recession, but the outlook is not rosy. Businesses need to be innovative and strategic to weather 2023.

Advertising Drives More Than Sales

Advertising is a significant contributor to the U.S. economy. A recent study quantifies how advertising benefits business growth. In 2020, it helped generate sales activity of $13.5 million per minute.

The study also found that advertising supports nearly one in five American jobs across a broad range of industries. The average job it supports pays $73,000, which is 12% higher than the national average.

Leveraging the Law of Familiarity

The Law of Familiarity says that the more familiar a prospect is with a business, the less risky purchasing its products or services seems. This is particularly important in B2B operations where employees may be negotiating pricey contracts or equipment on behalf of their company. They don’t want to be responsible if something goes wrong.

Loyal customers are essential to enduring income and organic growth. Businesses who over-trim their marketing budgets during downturns lose the visibility that makes them an easy choice.

Businesses That “Go Dark” Lose Customers

When faced with economic uncertainty, marketing seems like an easy cut. Particularly if a brand has a strong base of loyal customers, budget-conscious executives can see it as a surefire way to save short-term cash. However, similar to training and development cuts, over-trimming marketing can have lasting consequences.

Research through past recessions shows that brands that “go dark” can see as much as a 24% reduction in brand use and a 28% reduction in brand image. This can result in a loss of market share and a slower and more expensive recovery.

“During uncertain economic times, marketing seems like an easy cut,” says Helms. “However, out of sight is out of mind. Businesses who strategically approach marketing during downturns position themselves ahead of competitors.”

Rather than slashing marketing budgets, Helms recommends an Anti-PR approach that disrupts traditional marketing approaches and increases brand exposure and influence. “In every industry,” she says, “Thought Leaders command respect, credibility, and trust.”

Familiarity in a Box

To help B2B startups wisely leverage their marketing budgets during economic uncertainty, JoTo PR is offering “Familiarity In a Box.” It’s a multichannel disruptive Anti-PR package for those challenging the status quo.

“Familiarity is the most underappreciated asset,” Helms says, “and we’re extremely bullish in helping courageous, forward-thinking brands lean in now and reap the benefits for years.”

To learn more and download the white paper, visit https://info.jotopr.com/the-law-of-familiarity.