Advice from a CMO in Economic Uncertainty

In times of extreme change, strong and experienced marketing leadership isn’t just helpful—it’s essential. As global markets react to shifting tariffs, geopolitical uncertainty, and changing consumer sentiment, businesses must respond not with fear, but with clarity and strategy.

At ACV, we’ve had a front-row seat for these shifts. Over the past few weeks alone, we’ve spoken with CEOs across footwear, food and beverage, and apparel. One thing is clear: companies are at a crossroads. Some teams are freezing, overwhelmed by complexity. Others are stepping back, reassessing, and moving forward with precision.

A Familiar Pattern: Learning from the Past

This isn’t the first time we’ve seen businesses face high-stakes decisions under pressure. During the early days of the COVID-19 pandemic, many CEOs responded to uncertainty by cutting what they considered “non-essential” functions. Chief Marketing Officers were laid off, and marketing budgets were slashed overnight.

Weeks later, e-commerce exploded. Consumer behavior changed rapidly. Suddenly, the very leaders who had been sidelined—marketers—were the ones most equipped to help brands pivot and grow.

We’re entering another pivotal moment. The decisions made in the next few months will separate the brands that thrive from those that falter.

Tariffs, Inflation, and Market Shifts: How Brands Are Responding

The new tariff landscape and economic volatility are affecting supply chains and consumer pricing. While some brands remain paralyzed, others are using this time to reallocate resources wisely. We’re seeing smart companies take action in three core ways:

1. Focusing on High-Margin Products: Instead of spreading marketing spend thin across the portfolio, brands are doubling down on the offerings that drive the most profit.

2. Adjusting Messaging in Real Time: Consumer sentiment around price, value, and trust is evolving rapidly. Brands that resonate today are those that speak to current emotions, not six-month-old data.

3. Preserving Strategic Capital: Some companies are holding off on large investments while maintaining flexible strategies. They’re prepared for both softening demand and sudden surges.

    

For CMOs and Marketing Leaders: If you're a marketing leader, this is not the time to retreat—it’s the time to recalibrate.

Here’s where to start:

• Run a mid-year marketing assessment. Identify your highest-ROI tactics across the funnel: awareness, engagement, and conversion. What’s working? What’s noise?

• Double down on what delivers. This isn’t about doing more—it’s about doing better. Focus on channels, campaigns, and messages that are driving real business results.

• Update your messaging to match current sentiment. Consumers are anxious about inflation, layoffs, and uncertainty. Tailor your value proposition accordingly. What mattered to your audience six months ago may not resonate today.

As brands pull back or struggle to adapt to tariff-related challenges, nimble brands with a solid strategy and cash reserves can step in to gain market share. Flexibility, creativity, and data-driven decisions are your biggest assets right now.

Here’s what smaller brands can do:

• Be bold, but calculated. Invest in areas where competitors are retreating, but ensure your moves are grounded in real-time market data.

• Use uncertainty as a differentiator. Agile brands can shift messaging faster, test new product bundles, or introduce value-based pricing quicker than their larger peers.

Data-Driven Decisions: Planning for Multiple Scenarios

Smart brands are already planning for two very different futures:

1. Tariffs stay, costs rise: In this scenario, profitability becomes paramount. Expect cost-cutting, pricing strategy overhauls, and more emphasis on direct-to-consumer margins.

2. Demand surges back: With consumer confidence rebounding, those ready to scale quickly will capture outsized growth.

Marketing leaders must be scenario planners now. Gut instinct isn’t enough—you need data to guide your decisions and tools that provide visibility across the entire customer journey.

Final Thoughts

Periods of uncertainty don’t call for silence—they call for smart, strategic action. The companies that make measured, data-driven moves now will be the ones that emerge stronger, more resilient, and better positioned for growth.

If you’re a CMO, founder, or growth leader facing hard decisions in the months ahead, let’s talk. We’re here to help you assess, plan, and lead with clarity.

About Aaron Carpenter

As former VP of Marketing at Levi Strauss and a transformative CMO at The North Face, Aaron has guided some of the world’s most dynamic brands into the digital era while helping to shape their unique brand identities to meet the evolving global marketing environment. Today, Aaron lends his expertise to a wide range of brands through powerful fractional work while maintaining his position as an influential global lifestyle marketing figure.