Marketing

Marketing During a Recession

Over the Christmas period I’ve bumped into several people who have helpfully pointed out that 2009 is going to be tough for Marketers. Unfortunatly this is going to be the case for practically everybody, with cuts facing every department or company. Its often been said that Marketing is the first to get cut and if you’re a marketer the response is to say that’s the last reaction a company should consider. While cuts are inevitable, it is now more important than ever to ensure Marketing strategies are doing what they set out to do and if not, why not? Marketing that is benefitting a business is always good and during a recession it is essential. But it need not cost the earth. When you consider Marketing involves almost every aspect of the business from suppliers to after sales service, from packaging to online activity there is plenty of scope to stand out and make marketing work for your business.

 

1. Cut marketing that is not working.

This might sound obvious but if an employee was not working would they last long at the company? If your marketing strategy is not meeting its objectives then why continue to spend on it. Try to establish why it’s not working and how that can be rectified. Sales could be falling due to a variety of reasons and not just because the company isn’t buying enough advertising space.

 

2. People are still spending

Just not as much. This places a greater importance on Marketing during a recession to ensure a firm can maintain and increase revenue. If marketing spend (outside of point 1) is cut how can a firm realistically hope to maintain revenues as communication with the consumer decreases?

 

3. Creativity is free.

As mentioned, Marketing can affect all aspects of the organisation. It’s not about getting customers through the door, it’s about ‘the customer’. A great idea is something that will benefit the organisation and the customer. Who better to come up with an idea than existing employee’s or customers who know how the business operates?

 

4. Invest in People

Namely your staff and your customers, and as in Point 3, this does not need to be expensive. During a recession you want your most important staff working to the best of their abilities, similarly you want your most important customers coming back. Satisfied staff make satisfied customers. While people will always remember packaging, a nice retail outlet, or website, they will never forget bad customer service. Investing in people need not cost a lot of money, a little thought and a bit of time (such as a surprise birthday cake) can be much more effective.

 

5. Use your resources

Is there a company resource that could be better utilised for little or no extra outlay? Maybe you have an existing database of customers (or a facility to collect their details) to keep in touch with via e-mail or build an e-mail newsletter. Is there an under used retail outlet? Or a way of cutting down on paperwork?

 

6. (Some) Marketing is free

Has your company recently done something positive for the community, achieved a sales record or launched a new product or service? A well worded press release to the local media requires someone with a little bit of imagination and time. You would often be surprised at how many people will end up reading it.

 

7. Barter

Yes the old tradition of bartering of swopping goods or services without monetary payment. Amongst your own network you will know people who could provide a service you require, do you have something to offer them? Maybe one party may need to add a nominal fee to balance the value, but its a lot cheaper than paying full price. Not only that but this can generate more business through referrals and word-of-mouth.  

 

8. Are you competitors cutting their marketing spend?

Will this development make it easier for you to maintain or increase your market share at current spending levels? If you decide to follow their lead, one must ask if following a rival is the right move to make? It’s important for consumers to see points of difference between products and services to provide a basis for decision making. 

 

9. So you have decided to cut Marketing down to its bare minimum?

What is the next strategy if Marketing is cut to a level where it is completely ineffective? Cut it completely or re-invest to try and make up for lost ground. Either way the next strategy must be known in advance.

 

These are just a few ideas I have in relation to Marketing during a recession, a time when effective marketing is required more than ever. They may or may not be useful, but certainly provide food for thought, feel free to leave comments.

Luke

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