Marketing in a down economy
As the economy has worsened over the past several months, the knee-jerk reaction
of many companies has been to cut spending.
And where do most companies begin slashing? In the area of marketing, which is
the primary means of generating growth.
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In fact, the opposite is true. It’s been shown that in both good times and bad, companies that thrive are the same
ones that view marketing as an income generator and not an expense.
The evidence also suggests that businesses should be marketing more, rather than
less, during an economic slowdown or recession. It’s the perfect time to promote since most small businesses typically slow down or
stop their advertising altogether. They rationalize that consumers aren't
spending and they don't want to waste their marketing dollars, so they choose,
instead, to sit back and wait.
That’s wrong-headed thinking that you, as a small business operator, can and should
take advantage of.
When comparing the figures of companies that continue to invest during hard
times with those that haven’t, the businesses that continue to spend gain market share from their
competitors during tough periods and position themselves to prosper afterwards.
It’s a simple scenario. When fewer businesses advertise, the messages don't get
lost. When you think about it, it's perfect for any small business… less competition.
A.G. Lafley, the CEO of Procter and Gamble, put it this way, “We have a philosophy and a strategy. When times are tough, we build market
share.”
Smart business owners know that marketing is an investment that needs to be
consistently executed when times are good or bad. Here are some tips to
continue marketing your business effectively without spending a lot of money.
Keep your company visible to your customers and prospects.
Don’t cut back on campaigns that keep you seen in the community. Make every attempt
to be visible. Attend networking events, send postcards, submit articles and
press releases to the media, and keep your company brand in site. When your
prospects have money to spend, they will remember you first.
Establish a marketing plan and continue with it.
Don’t abandon it. If you are in the middle of executing your plan for the year and
the activities are working, stay the course. Evaluate the outcome of different
activities and take money from one that may not be working well and put it
towards another that is.
Market to your regular customers.
Many businesses forget to market to their client base. These people already know
and trust you so why continue to promote your services to them? The barrier to
the sale is much lower and if the need is there, people will spend the money.
Look for ways to add value.
People will still buy valuable services. Rather than discount, add more to the
package and market the benefits of why people should do business with you. Once
you get used to not discounting, it is very easy to say no to people who are
merely price shopping.
Experiment with digital media and market smarter, rather than less.
Digital media makes targeted marketing more cost effective than ever.
When investment is tight, you need to ensure you’re making the best use of your budget. With digital you can launch targeted,
personalized campaigns that are more cost effective than traditional
advertising and measurable to every click.
Websites and e-mail campaigns can be tracked and data captured on your prospects’ needs, preferences and desires to help you understand what messages to deliver
and to whom. You can then segment and profile your customers so that you’re able to deliver true one-to-one marketing that’s more relevant and precisely targeted to trigger a response.
The effectiveness of “one size fits all” mass marketing is starting to wane. Customers now expect your messages to be
relevant and personalized if they’re going to reward you with their time. And digital makes it easier and more
cost effective than ever to run campaigns tailored to each individual.
Again, based on the evidence and just pure common sense, a recession presents an
opportunity to gain market share from your competitors if they have given in to
the fear factor. And with digital you can now deliver campaigns that are more
cost effective, measurable and targeted than ever before.
So before your decide to guillotine your marketing budget, think of marketing as
a revenue generator rather than a cost. With careful planning and execution you
can use the present downturn to gain customers from your competitors and when
the economy takes off again and the storm clouds pass, your business will be
positioned as the leader in your market.
