He gave a great speech that talked about how Kodak has had to reinvent itself and discussed the direction they are taking the company. Kodak has been around since 1888 and was always known as the leader in film. To show why Kodak needed to change, he asked the crowd to raise their hands if they owned a digital camera. Nearly everyone had a hand in the air. Then he asked how many had actually developed a roll of film in the last 6 months: I saw 4 people (out of a couple hundred) with their hands raised. Hayzlett said, “Welcome to my world!”

His proof that Kodak has changed:

• 60% of the people at Kodak were not there 4 years ago.
• 70% of their overall revenue comes from digital sources.
• Their primary focus is on their social network site– Kodak Gallery (the 2nd largest social networking site with 70 million users) and on their new printers.

Kodak Gallery allows users to store and share photos. They can also order prints, make photo books and put photos on about anything (and what cat lover doesn’t want a pillow with Gizmo’s face on it?). And, their biggest goal is to make it more interactive between users (make the site truly a Web 2.0 site). He feels they understand the importance of community, and he teased the audience to keep an eye for exciting new features.

While I was there, I had the opportunity to visit with some of my clients & prospects and most seemed to have one thing in common: Social networking. One customer of mine is a premier provider of communication software for online communities and is used by sites like MySpace and Friendster. One prospect, bills itself as the leader in social media marketing with sites like PayPerPost.com. These companies along with a reinvented Kodak show the emphasis on community and Web 2.0 in business today.

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.
]]> http://www.inetinteractive.com/blog/growing-your-business-during-an-economic-downturn/feed/ 1 http://www.inetinteractive.com/blog/why-should-you-increase-your-advertising-budget-in-a-recession/ http://www.inetinteractive.com/blog/why-should-you-increase-your-advertising-budget-in-a-recession/#comments Thu, 24 Apr 2008 21:36:29 +0000 kelly http://www.inetinteractive.com/?p=49 Advertising Age, boasts about various brands which were birthed as a result of recession.]]> Recession—it’s the inescapable word these days, isn’t it? Well, it doesn’t have to be a dirty word. Recession can be a savvy marketer’s best opportunity to get noticed. There are several well-know examples of this. In fact, a recent cover story in Advertising Age, boasts about various brands which were birthed as a result of recession. These include the IBM personal computer in 1981 and the iPod twenty years later. But, one of my personal favorites is the story of the Kellogg’s. brand because it illustrates how a small company can make it big through smart marketing (or it could just be that I love breakfast cereal). Either way, the story goes something like this (don’t quote me on all of the nitty gritty particulars)…

During the Great Depression, Post was the leading cereal brand. In fact it was the only cereal brand people would have thought of at the time. But, due to the Depression, money was tight and sales were falling. Post figured they did not need to continue advertising because they “owned” the market (for cereal) and they needed to cut expense. Cereal was considered a luxury anyway.

Kellogg’s, on the other hand, took advantage of the economy that was suffering. They created a positive ad campaign featuring Tony the Tiger and the very positive and enthusiastic Kellogg’s slogan “They’re GREAT!” They DOUBLED their ad budget, and bought ad spots in newspapers and radio time across the nation. Americans loved Tony the Tiger and the positive message he sent during a very negative time. Kellogg’s brand bucked the trend, and grew quickly, in a time when money was tight by keeping their brand top-of-mind.

Today,Kellogg’s remains a top cereal company in the US—perhaps even the #1 cereal company. Why? Because they unleashed the power of advertising.

What are you doing for your brands?

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