Marketing in a Recession
This morning I heard the phrase "mini-depression". Here's hoping that doesn't make into the 2009 list of pop-culture vernacular.
I've spent some time thinking about marketing during this economic cliff we've jumped off of. Obviously, DGT have seen clients scale back their activities. But we've also had clients who are stepping on the gas. Rather than make flimsy "you should be marketing" post, I'll qualify who probably should or shouldn't, and the best ways to take advantage of it.
Who should be marketing right now?
If your business is not imperiled by the current recession, the choice to continue or expand marketing is a no-brainer. But what if your company is taking a hit. Marketing is an investment, and like all investments, it's a calculated risk. What do you stand to lose? What do you stand to gain? Are your competitors similarly affected by the slump? Does that mean you could expand market share to offset reduced current profits?
I'd break it down like this: if there is the possibility of expanding your market share, and you have any funds available - it's probably a good idea. If you funds are very tight, or you've essentially maxed out your audience already - it's time to circle the wagons.
Marketing for Recessed Customers
Most people are feeling the pinch. Consumers and businesses alike. It's important to understand that the traditional rules don't apply. First - market the value competitively. If you can point to a competitive vendor or choice, and establish you've got a better value - that carriers weight. If you can go one step further, and market lower prices, that's even more compelling. I traditionally advise customers against this last course of action - it puts you in a brand box that can get uncomfortable over time. However, these are not ordinary times - and being what they are - marketing lower cost and value is important. Wal-mart's cost-saving marketing blitz originated from the last recession when the internet boom went bust.
Incentivize contact
You want your prospects to become available and remain easily addressable. By incentivizing opt-ins with discounts, and other promotions - you are increasing your potential market. Don't think of the challenge as your customers can't afford enough of your offering. Change that challenge to become reaching more potential customers who can.
Get Darwinian
There are ethical guideline about competition. But it exists. In a downturn, there are going to be failures and weakening companies. It's the law of business, and is the only way for other companies to survive and thrive. If you have a competitor who seems to be ailing - speak to his addressable market. Particularly if you are not ailing as well - customers will want to switch from a hungry sick vendor to a hungry healthy one. You'll have to let them know you are hungry (and are keeping it a buyers market). There doesn't need to be negative campaining - simply co-opt a new audience, and give them a quality message.
I've spent some time thinking about marketing during this economic cliff we've jumped off of. Obviously, DGT have seen clients scale back their activities. But we've also had clients who are stepping on the gas. Rather than make flimsy "you should be marketing" post, I'll qualify who probably should or shouldn't, and the best ways to take advantage of it.
Who should be marketing right now?
If your business is not imperiled by the current recession, the choice to continue or expand marketing is a no-brainer. But what if your company is taking a hit. Marketing is an investment, and like all investments, it's a calculated risk. What do you stand to lose? What do you stand to gain? Are your competitors similarly affected by the slump? Does that mean you could expand market share to offset reduced current profits?
I'd break it down like this: if there is the possibility of expanding your market share, and you have any funds available - it's probably a good idea. If you funds are very tight, or you've essentially maxed out your audience already - it's time to circle the wagons.
Marketing for Recessed Customers
Most people are feeling the pinch. Consumers and businesses alike. It's important to understand that the traditional rules don't apply. First - market the value competitively. If you can point to a competitive vendor or choice, and establish you've got a better value - that carriers weight. If you can go one step further, and market lower prices, that's even more compelling. I traditionally advise customers against this last course of action - it puts you in a brand box that can get uncomfortable over time. However, these are not ordinary times - and being what they are - marketing lower cost and value is important. Wal-mart's cost-saving marketing blitz originated from the last recession when the internet boom went bust.
Incentivize contact
You want your prospects to become available and remain easily addressable. By incentivizing opt-ins with discounts, and other promotions - you are increasing your potential market. Don't think of the challenge as your customers can't afford enough of your offering. Change that challenge to become reaching more potential customers who can.
Get Darwinian
There are ethical guideline about competition. But it exists. In a downturn, there are going to be failures and weakening companies. It's the law of business, and is the only way for other companies to survive and thrive. If you have a competitor who seems to be ailing - speak to his addressable market. Particularly if you are not ailing as well - customers will want to switch from a hungry sick vendor to a hungry healthy one. You'll have to let them know you are hungry (and are keeping it a buyers market). There doesn't need to be negative campaining - simply co-opt a new audience, and give them a quality message.
posted by Brant at
11:38 AM
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