Marketing communications expert and Group Chief Executive Officer of Prima Garnet, Mr. Lolu Akinwunmi has cautioned against hasty and indiscriminate slash of marketing budgets, as a cost- saving measure, during recession, arguing such action might not necessarily enhance the fortunes of the brand it is meant to protect.
Akinwunmi made this observation while delivering a lecture, tagged ‘Maintaining Market Leadership In A Turbulent Environment’, at the fellowship award of the National Institute of Marketing of Nigeria (NIMN), held virtually, recently.
The former Chairman, Advertising Practitioners Council of Nigeria (APCON), argued that since the nation’s economy is passing through turbulent times, maintaining leadership at such period for brands and marketing professionals, therefore, requires an adjustment of strategies, tactics and products offerings so as to meet shifting demands.
“As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments. Marketing expenditures from communication to research are often slashed across the board. We all know that in many instances, such cost -cutting decisions are indiscriminate, and can even be a mistake,” Akinwunmi stated.
The former APCON chairman believes that while it may be wise to contain costs, failing to support brands or examine core customers’ changing needs can jeopardize performance over the long term, adding that companies that put customer needs into consideration, enhance their fortunes better than those that embark on indiscriminate ad spend review.
According to him, the COVID-19 global pandemic has induced changes in marketing communication, promotional and media spends, forcing businesses and brands to re-evaluate their thinking about current and future marketing campaigns.
He argues that while brands try to reposition themselves, in the highly uncertain economic terrains, the likelihood of market alteration, increased competition and demand for creative and aggressive marketing practices, is becoming increasingly obvious.
Akinwunmi, also a fellow of the marketing institute, stated further that though the telecoms industry seems to be the only active sector for now, the ‘honeymoon’ may soon be over if the economic situation fails to improve, and individuals’ earning powers are affected.
“So in essence, we are looking at a tougher time the rest of 2020 and the first two quarters of 2021, during which we cannot meet our projected growth forecast and will now be lucky if the economy grows by 1%,” he stated.
The Prima Garnet’s boss believes the impact on the nation’s marketing industry is grave, since it is likely to suffer serious reverses associated with the general business environment.
“We may witness fewer investments in the industry at large because of low ROI. We may also experience disruptions in operations, like salary cuts and adjustments, as income drastically reduces and we may even see many companies having no choices than to retrench,” he stated.
Akinwunmi however believes that embracing changes in marketing and marketing communications ecosystem, coming to terms with the chaos and getting ready to re-build, have become imperative for marketing practitioners.
The former APCON boss argues further that managing new imperatives for growth, should also be of utmost concern for marketing practitioners, desirous of maintaining a leadership position with their brands ‘in the midst of this uncommon level of uncertainty’.
Congratulating the new fellows, the institute’s president, Mr. Tony Agenmonmen, described the conferment of a total of 48 individuals with the Fellowship of the institute, as an indication of the institute’s rising profile, as it continues to attract quality practitioners into its fold.
He therefore urged the new fellows to project the image of the institute, positively; since many will look up to them for leadership, counsel, and directions with regards to activities concerning the Institute.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
From the 58,795 samples tested last week, Nigeria recorded 937 new COVID-19 infections.N170 fuel price wicked
Tribune Online analysis also shows that the new confirmed cases are slightly higher than those recorded the previous week (October 25 – 31) where the country recorded 923 cases.N170 fuel price wicked
Democratic candidate, Joe Biden has been elected President of the United States of America.
According to CNN projection, Biden polled 273 electoral college votes while President Trump garnered 213 electoral college votes.N170 fuel price wicked
Kamala Harris made history on Saturday with her election as Joe Biden’s vice president, becoming the first woman, first Black American and first Asian American to win the second-highest US office.N170 fuel price wicked