Marketing During a Recession
|
Background
The official definition of recession is two consecutive quarters of negative growth in Gross Domestic Product (GDP). Between
1948 and the second quarter of 2007 there were nine recessions. During this 60-year span of 238 quarters, GDP growth was
negative in only 33. However, during this same time period, Personal Customer Expenditures (PCE) were negative in only
18 quarters. In a more recent timeline of 102 quarters, 1982 until the second quarter of 2007, PCE was negative in only three quarters.
Who has control during a recession?
The stock market? Commodities traders? Uncle Sam? The correct answer is none of the above. The groups that have control in
a recession are the business owners and their customers.
Will the customer stop spending?
If there is a recession or economic slowdown, will the customer buy into not spending money? History says they will not. In the past 25 years, recession or not, the consumer almost always kept on consuming regardless of economic conditions.
Situation Analysis
With the economy slowing down,companies are faced with belt-tightening; inevitably, the first departments to see
cutbacks are marketing, advertising and public relations. The belief is this: A company thinks it can get along without communicating and not having a strong public relations program in place. On the other hand, they need employees, legal counsel, accountants and need to pay rent.
But does this make sense?
When times are tough, isn’t it simply logical that companies must aggressively work to get more business? When the economy is sluggish, the worst thing a company can do is pull their marketing and become invisible to current and future customers and clients.
If a company finds itself in a soft revenue cycle and cutbacks need to be made, all aspects of the organization should be
looked at, not just one. But this doesn’t suggest that it should be business as usual. Marketing is seen as the lifeblood of all
organizations. The beauty of marketing is that it can be strategically re-tooled and redesigned so that more can be done for less.
PR campaigns can be more targeted... Ad campaigns can be more strategic... Marketing programs can be more efficient.
Remember, marketing is an investment. It must pay for itself.
Action Plan
The best way to thrive during economic hardship is to make sure your clients know where to find you. Every second of every
day, someone somewhere needs your product or service, and they will buy it. Make sure they know where to get it.
When you continue to market your company during these hard economic times, make sure you know where to allocate your
resources for the most efficient R.O.I.
WHAT IS YOUR PLAN OF ACTION?
Continuing your business through:
- Referrals – Start with your current customers, how can you acquire more without spending more?
- Cross Selling – Your sales force needs to add additional products onto each sale – e.g. shoes need
socks...shirtsneed ties, etc.
- Value Added – If you create more value in the customer’s mind, they will buy higher profit products that will last longer.
- Strategically re-tool and re-design your marketing campaigns to work in this economy
- Focus on profits and what is profitable – if it isn’t, it may be time to end that relationship
- Monitor cash flow to keep the bills paid and the money coming in
- Know the market, re-evaluate the target market for your business, and make sure you are reaching that market
- Consider outsourcing some work, sometimes hiring outside help will take a huge financial burden
off the company and help to foster growth - Reassure your staff and communicate with them the details of the company’s 2009 plan
- Monitor expenses and financial resources without drastically cutting promotional or other marketing efforts
– your company will be positioned for growth when the turnaround comes - Create sales programs that involve the whole company to build positive momentum
- Contact current customers and prospects to communicate a positive spin on the company’s efforts
- Create a pool for employee incentives – this could not only boost sales, but also keep employee morale high
- Limit any negative impact on employee salary and benefits (as much as possible)
and communicate to them the challenges the company is facing - Above all, management should maintain a positive outlook and communicate that feeling to your employees
Marketing Plan
- Advertise, communicate and
market your products in a smarter,
more economical way. As a
business,
you have a limited advertising and marketing budget, you need to get creative in what you do and how you do it. - Are you missing customers? Revisit the demographics of your best customers and make sure you know where they are watching, reading and listening. When new innovations are announced, cut out the information, attach your business card and get it to the newspaper, TV or radio. You could be the “expert” they interview when they do the story.
- Expand your sales force. Your employees are with you 40 hours a week and with their family and friends for 128 hours a week. Every employee should promote the company to friends and family, who in turn might mention it to someone else.
Economic slowdowns are hardest in
businesses that live and die by price alone.
Customers are always looking for a bargain,
but price alone isn’t always a sign of value.
Stress investment in your products, build
value and loyalty.
Businesses can survive and thrive in the
current state of the economy. Most people
are feeling the pain of living through this
tough economy, but smaller businesses
tend to feel it even harder.
A small business can endure the financial
storm and thrive, but for this to happen,
they have to be proactive.
Small businesses are taking the brunt of this poor economy, but if you see the challenge, face it head-on, and find ways to
make it work, you will be around for a long time. Just think, if you can make it as a business in this economy, it’s only going to
get easier.
With today’s challenging business climate, an organization’s need to develop new, innovative products and services is at an all
time high. We are in a time when we need to think “outside-of-the-box.”
Your Future Success
Quest Fore knows the struggles you are facing, because we are facing them too! In fact, the tips above are time-tested by us.We have used many of them to survive and thrive through more than 32 years of up and down markets. Use these tips to
ensure the success of your business.
Quest Fore would also like you to keep old clients and gain new ones by helping you think “outside-the-box.” Working together, we’ll get your name, your brand, your service and your product out there to better serve you and your market. Your dollar will go further. Your name will never become invisible to your clients.
Quest Fore will ensure that your marketing communications investment not only pays for itself, but that it adds
a breath of life into your company during this recession.
CONTACT US TODAY FOR MORE INFORMATION
email info@questfore.comcall 412.381.6670
Quest Fore, Inc. 2100 Wharton Street Suite 500 Pittsburgh, PA 15203
