Top of Mind Awareness: A Crucial Marketing Principle in a Contracting Economy
In a contracting economy, Top of Mind Awareness (TOMA) becomes a critical marketing principle. As consumer spending tightens, it is essential for your business to be the first one that comes to your target audience’s mind. Achieving this requires leveraging a strong Unique Selling Proposition (USP) through effective marketing strategies.
Illustrating the Concept:
Imagine my girlfriend and I deciding where to go for dinner and drinks in town. With 20 options available, none truly stand out, leading us to spend 15 minutes deciding. Given the rising food prices, this is now a weekly outing at most. Sometimes, we may choose to eat at home first and then go out for a couple of beers to fulfill our social needs.
Many local businesses struggle because they lack a compelling USP or the robust marketing needed to remain top-of-mind for consumers.
The Importance of Strong Top Line Revenue and Creativity:
Strong top-line revenue, combined with creativity, can address most business challenges. However, as the top line contracts, businesses have fewer opportunities to pivot or adapt. When consumer spending decreases, businesses relying on staff compensated through tips face additional challenges. Tight revenue limits the ability to subsidize tips with hourly pay increases, leading to staff dissatisfaction, increased workload, and ultimately a decline in service quality and retention.
Strategic Recommendations:
Understanding and implementing TOMA and a robust USP may not completely prevent these challenges, but they position your business for better survival and growth as the economic cycle recovers.
Local businesses should identify at least one highly marketable key component and promote it relentlessly. Aim to establish your business as a destination and continuously engage both new and existing audiences to drive top-line revenue.
By focusing on these principles, your business can navigate the challenges of a contracting economy and emerge stronger as conditions improve.
Read more about the issues Hill Country restaurants are facing.