Since World War II, the United States has weathered 11 recessions. Mature companies have experienced economic slowdowns before and they know how to deal with them. Executives need to look at both the long and short term solutions and opportunities to marketing in a down economy.
Be aggressive. The marketing investments of your competitors could be reduced.
Advertising Age states that in the most recent recession, the first three quarters of 2001, the advertising industry suffered its deepest budget cutbacks in 75 years. It is important to know that if an organization continues to proactively market in this environment, it can gain leverage. The companies who perceive the recession as an opportunity can capitalize on it quickly. A recession creates a unique environment that makes aggressive marketing even more successful. There will be less “noise” in the short term for companies to compete with. Less proactive organizations will slash their budgets and the number of marketing efforts will decrease. Consumers will be easier to reach. Also, the cost of marketing decreases as the media will be more willing to make deals as they compete for a share of a smaller spend.
A down economy is a great opportunity to grow your brand.
Proactive marketing sends a message to customers that the organization is confident in its staying power during hard times. The credibility that public relations efforts offer is perfectly suited to slowing economic times. Public relations are a less expensive marketing tool that also maintains relationships and keeps the organization’s name in front of its audiences. This sort of marketing may also act as a buffer against declining sales and increase market share by taking customers away from those with slashed budgets.
Be proactive.
The economy will come back. History is a clear guide for us. As the economy upswings, organizations will start actively marketing again. But the organizations that continued to proactively market during economic downturns will have a competitive advantage over those that are playing catch-up. This approach is tried and true. Marketing News reported that in 2001, companies that maintained or increased their marketing efforts managed to boost their market share and outperform those organizations with decreased marketing by almost 250 percent.
Your customers are more valuable than ever.
During an economic slowdown, organizations cannot afford to lose current customers. It is much more expensive to gain than to retain, which is why it is so critical to focus on current customers. Turn current customers into loyal brand advocates by focusing on their needs. Communicate with them frequently and survey them to assess their changing needs.
Buying habits change..
For example, consumers will spend less on personal items and discretionary purchases. But they are willing to spend more on brands that they value and trust. Use limited dollars more effectively to develop a stronger brand relationship with customers. Monitor customer activity to learn what resonates. Customer research can provide insights into their behavior, as well as potential opportunities.
Focus on interactive marketing tools.
In the short and long term, social and interactive marketing tools deliver numerous benefits. Interactive marketing is less expensive and often more effective than traditional marketing outlets for reaching target audiences. Use these tools as a personal touch-point to strengthen brand confidence. Research indicates that more than 40 percent of consumers will increase their use of social networking tools such as blogs, user-generated content and e-mails. Research also showed that using these tools can boost revenues nearly four times. If an organization is not utilizing these tools, then now is the time to learn.
For more information on marketing in a challenging economic climate contact Brian Hanify at brian@teamhanify.com or visit www.teamhanify.com . Brian can be heard every Monday morning on WCRN AM830 beginning at 8:30am discussing the latest business trends.
