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Growing your business during an economic downturn
It’s happening, and your opportunity is here! If you read my last post, you know that I am a believer in the power of marketing during an economic downturn.
According to a new Downturn Report (PDF), released by Marketing Sherpa, 60% of large companies have already cut their marketing budgets or have a cut planned for 2008. This opens up a window of opportunity for smart marketers. Why? One big reason is that more available ad inventory gives you the opportunity to gain a larger voice and a good reputation in your market.
Advertising and PR are the great equalizers—consumers on the Internet don’t know if you are doing business in a high-rise on Fifth Avenue, or if you and a buddy are working in your garage. The only thing that builds trust in your brands, and ultimately sells them, is good marketing and word-of-mouth advertising. In an economic downturn, take advantage of available media space and stand out from the crowd!
Some Tips to Consider:
- “Make sure you’re not spending too much of your budget on marketing overhead that doesn’t translate into impressions and messaging that prospects will actually see. Spending too much of your budget on overhead (creative and agency expenses) isn’t going to drive revenue,” says Jay O’Connor, Sr.VP Worldwide Marketing, NetSuite Inc., in the Marketing Sherpa Downturn Report.
- Think about your message and align it with consumers’ pain points. Did anyone besides me watch the movie Mr. Mom about a hundred years ago (actually, just 25 years ago)? There was a little scene where Teri Garr (the mom in the movie who took a job at an ad agency) wrote a campaign for “Schooner Tuna—the Tuna with a Heart.” If you saw the movie, you know where I am going with this. If not—the point openly confronted the fact that people were hurting from a recession, by dropping their prices to help out working families of America. Cheesy? Yes. But, don’t forget about what Tony the Tiger did for Kellogg’s. Be smart with your message and make sure it addresses your customers’ need for good value.
- Take advantage of the FREE stuff—there are lots of PR opportunities and ways to manage your reputation that don’t cost anything. One way, which we at iNET are most familiar with, is through participation in the communities you serve. You are an expert in your field, right? Sharing a little bit of that knowledge through a community forum site goes a long way to building your credibility. Plus, hanging out in a forum where people are chatting about their problems and discussing the products they plan to buy is just like having a mini focus group without the expense. People will chat with their friends and colleagues, even during a recession. Turn yourself into a “friend” or “trusted colleague.”
- Test your message and measure your ROI. The best thing about Internet advertising is immediacy: you can quickly make changes to messages that aren’t working.
Melissa Paulik said:
Kelly,
Great post. The recession or downturn, depending on whether or not you are an economic purist or just someone feeling the pinch, is a great time for marketers to assess their approach to marketing.
When I joined my company two and a half years ago, they were doing a lot of very traditional marketing such as snail mail direct mail campaigns and a very static web site that was nothing more than an online version of the brochure.
I asked the team to throw all their preconceived notions out the window. We now have a site that is at least interactive with our target customer. All of our demand creation is electronic. And, we’re tapping into blogs and other social media to reach out to customers, business alliances, press, analysts and others.
In short, lead generation has doubled, quality of leads has improved, and we’ve slashed expenses.