Brand awareness

Brand awareness

When the economy softens, marketing is often cut. But some Gulf Coast companies are doing the opposite.

Splash! An Ocean Grill, a seven-year-old restaurant in north Hillsborough County, has always spent 4% to 5% of gross sales on marketing.

That didn't change when the economy got tough last year. "You still have to have people remember who you are," says Chip Roehl, a partner in Splash.

Antonio Hill, director or marketing services for PSCU Financial Services in St. Petersburg, echoes that comment.

"We think that it's important to maintain a strong presence in the market," Hill says. "You still need to promote your message.

That message is the company brand. While many companies look at marketing as a viable place to cut when revenues fall in a softening economy, a number of Gulf Coast companies think marketing in a tough economy is a great way to gain market share, and the only way to protect it.

Hotels often cut their room rates and marketing in tough times. They regret both because it will take a while, maybe years, to get rates back to original levels and people will forget where the hotel is, says Lou Plasencia, chief executive of The Plasencia Group, a Tampa hotel brokerage.

"Cutting marketing is a grave mistake," Plasencia says.

Splash is returning to TV advertising because historically it has brought a more than comparable increase in sales to cover it. It also uses email, direct mail and print advertising.

Complicating things for the restaurant is its location, wedged inside an outdoor shopping center, not facing Dale Mabry Highway.

"Outback and the big boys have their buildings as a billboard," he says. "You can't see us from the road."

Hill can understand how small companies may be forced to look at cutting marketing, because there are not many things to cut. But instead, he favors keeping brand advertising and cutting promotional advertising. A company may also adjust its marketing to a more value-oriented message in tougher times.

A lot of things go into a strong marketing plan, including core advertising and promotion and target marketing to segments of customers. Companies may pull back marketing to segments, but it should maintain sending its core message, Hill says.

Joy Gendusa, founder and chief executive officer of PostcardMania, a Clearwater direct mail firm, is increasing marketing because of the softer economy. A couple of customers cancelled orders during the election, but PostcardMania kept marketing. Gendusa's husband's title search business has maintained its marketing spending while competitors have closed.

"If you cut marketing then you go into a slow death," Gendusa says.

Jeff Caponigro, president and chief executive officer of Caponigro Public Relations in Tampa, says when other companies are pulling back marketing, this the best time to break through with a marketing message because there is not as much competition.

"Companies are finding it easier to get messages out," he says.

While some advertising agencies have struggled because of less marketing spending, ChappellRoberts in Tampa is having one of it best years and hired two new people recently. The firm is fortunate to have a mix of clients who think long-term.

"We tell clients, in down times, you can increase your share of voice," says Colleen Chappell, chief executive officer. "There is less noise."

Direct mail results are stronger because there is less competition in the mailbox. Consumers are not getting several credit card offers each week.

But the softer economy has made companies more careful about their spending, including marketing.

"What we see is clients who are looking longer-term, looking very hard on how they spend each dollar," Chappell says. "We help insure that every dollar they spend is with the right medium with right audience."

- Dave Szymanski