Why the marketing pyramid doesn't work in times of crisis and what measures need to be taken - Image: Xpert.Digital
Why conventional marketing fails in times of crisis - and what companies can do
From the pyramid to the plan: This is how crises change marketing priorities - adapting instead of standing still in the crisis
In times of crisis, the classic marketing pyramid, which is often based on a hierarchical structure of needs and priorities, often becomes ineffective. This is because the behavior of consumers and companies changes drastically in uncertain times. Companies must therefore adapt their strategies in order to continue to be successful. Here are the reasons why the marketing pyramid doesn't work in times of crisis, as well as recommended actions:
Why the marketing pyramid doesn't work in times of crisis
1. Changing consumer priorities
During crises, consumer needs and purchasing decisions change. Basic needs and security are in the foreground, while luxury goods or “nice-to-haves” take a back seat.
2. Corporate budget cuts
Many companies reflexively reduce their marketing budgets, resulting in a decline in advertising activity. This reduces competition for attention, but also limits the reach of your own brand.
3. Insecurity and reluctance
Both companies and consumers are acting more cautiously. Long-term investments or risky marketing approaches are avoided, which limits flexibility.
4. Inappropriate messages
Standardized marketing strategies or unchanged messages can be perceived as inappropriate in times of crisis. Customers expect empathy and relevance in communication.
Measures for effective marketing in times of crisis
1. Target group orientation and empathy
- Analyze the current concerns and needs of your target group.
- Tailor your messaging to offer solutions to your customers’ specific problems.
- Communicate empathetically and authentically to build trust.
2. Agility and adaptability
- Continuously monitor the performance of your campaigns and adapt them to changing market conditions.
- Shorten decision-making processes within the company in order to be able to react quickly to new developments.
3. Focus on long-term brand loyalty
- Stay visible, even if short-term success is harder to achieve. Brands that remain present in times of crisis are perceived as reliable and benefit in the long term.
- Invest in content marketing that has a lasting effect and bears fruit after the crisis.
4. Multichannel strategy
- Use multiple channels such as social media, newsletters or content platforms to effectively reach your target groups.
- Rely on cost-effective measures such as community campaigns or user-generated content.
5. Budget optimization instead of cuts
- Strategically reallocate your marketing budget. Focus on channels with high effectiveness and lower costs.
- Countercyclical advertising can be cost-effective during a crisis and secure market share in the long term.
6. Creative solutions and relevance
- Develop innovative approaches that take into account the current context (e.g. new product offerings or services).
- Avoid “business as usual” messages and instead demonstrate adaptability to the crisis.
7. Transparent communication
- Communicate openly about changes in business processes (e.g. delivery times or availability).
- Use social media or newsletters for regular updates and to create proximity to customers.
The classic marketing pyramid often fails in times of crisis due to its rigid structure and lack of adaptability to changing conditions. Instead, companies should rely on agility, target group-oriented approaches and long-term strategies in order to emerge from the crisis stronger. Empathy, creativity and wise use of budget are crucial for success.
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What is the marketing pyramid and how does it work?
The marketing pyramid is a strategic model used in various forms and contexts to structure marketing objectives, customer relationships or brand development. It serves as a visual and hierarchical tool for organizing marketing activities and strategies. Depending on the specific approach, the pyramid can have different focuses:
Types and functionality of the marketing pyramid
1. Goal pyramid in marketing
This shape of the pyramid divides the marketing goals into three hierarchical levels:
- Company goals: The top level includes general goals such as growth, profitability or market share.
- Strategic marketing goals: This middle level defines specific goals such as increasing brand awareness or improving customer loyalty.
- Operational marketing goals: The lowest level includes concrete, short-term measures such as the number of leads or clicks generated.
Each level builds on the previous one, so that operational measures directly contribute to achieving strategic and ultimately business goals.
2. Customer-centric marketing pyramid
This variant is used to segment customers based on their value to the company:
- Top customers (1% of customer base, 50% of sales)
- Major customers (4% of customer base, 30% of sales)
- Medium and small customers with a decreasing share of sales.
It helps companies use their resources more efficiently by focusing on profitable customer groups.
3. Brand pyramid
The brand pyramid describes the development of a brand from basic characteristics to the brand core:
- Features and attributes
- Functional advantages
- Emotional benefits
- Brand personality and core values
- The essence of the brand.
This model helps companies clearly position their brand and build an emotional connection with customers.
4. Maslow's hierarchy of needs in marketing
Maslow's Hierarchy of Needs is used in marketing to position products and services to address specific human needs:
- Basic needs (e.g. food, safety)
- Social needs (e.g. belonging)
- Self-realization (e.g. individuality).
The model helps to develop targeted advertising messages that are tailored to the respective needs of the target group.
Advantages of the marketing pyramid
- Structured goal setting and prioritization of projects.
- Efficient resource allocation by focusing on important customer groups or measures.
- Clear orientation for long-term strategies and short-term actions.
- Support with brand positioning and customer loyalty.
The marketing pyramid is therefore a versatile tool that can be adapted depending on the context to ensure strategic clarity and operational efficiency in marketing.
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