According to recent statistics from the UK government, the housing market in the UK has been on an upward trend, with an increase in both the number of new homes being built and the average price of properties.
This ‘golden age’ has presented opportunities for house building companies to reach a larger audience and drive sales. However, with a recent change in economic conditions there’s every chance we could see a reduction in the number of potential buyers, ultimately resulting in a drop in the average house price. This would create fierce competition, making it important for companies to differentiate themselves and engage with potential buyers in a meaningful way.
House builders may need to cut costs, and quite often marketing expenditures are slashed indiscriminately. But, there is a balance to be had here, as such a move can severely impact performance over the long term.
Thinking differently
Taking a more pragmatic approach, how can house builders adapt their marketing to accommodate a change in consumer behaviours and preferences? For example, promoting value-oriented products or services, or highlighting the ways in which a company can help consumers save money, can all be effective marketing strategies during economic uncertainty. In house building, a great example of this is through the money saved from living in a more energy-efficient property.
Investing in marketing during an economic uncertainty can also position a business for success once the economy recovers. By continuing to build brand awareness and customer loyalty during tough economic times, businesses can set themselves up for growth when the economy improves.
This is supported by a study from the Harvard Business Review which found companies who maintained or increased their marketing spend during the 2008 financial crisis saw higher sales and market share growth than those that reduced their marketing efforts.
Some final thoughts
In conclusion, marketing during economic uncertainty becomes even more vital for businesses to ensure they remain competitive and adapt to changing consumer behaviours. While it may be tempting to cut marketing spend in an economic downturn when every penny counts, research shows that doing so can seriously harm a company’s longer-term success.