Marketing in a Slowing Economy: A Checklist
Compiled by
Vistage Corporate Communications Staff
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Several years ago a
group of information technology entrepreneurs gathered to honor the top
innovators of their time. Inventors, company founders and venture
capitalists received awards for their contributions.
And then there was
the lone marketing executive, who took home equal honors.
Seeing the surprised
faces in the audience, the honoree took the stage and reminded everyone that
without great marketing, wonderful products and services and startups often
languish, even perish. Oftentimes businesses miss opportunities because they
do not understand the importance of marketing. This is especially true
during an economic downturn, when companies should carefully consider their
strategies to capture more attention -- and revenue – or risk losing too
much business to remain viable. Yes, it’s possible that even in an economic
downturn businesses can gain market- and mindshare and continue to grow.
Here are some approaches we’ve culled from various interviews and online
resources.
From
Kevin Masi, co-founder
and principal of Torque Ltd., a creative marketing agency:
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In the increasing
ferocity of global economic competition, marketers must connect to people
to create customers and realize critical business momentum. Masi predicts
businesses need to develop “tribal intelligence” to generate new business.
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Consider moving more
resources towards new media, such as Internet or mobile phone advertising
that includes a sophisticated, relational apparatus that provides access,
meaning and invitations to people for their participation.
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Rather than sell a
product or service, sell a solution to a problem or goal. This requires
companies to truly understand what motivates their desired demographic –
their desires, behaviors and how best to meaningfully reach them.
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Similarly,
differentiate your product from the many others like it by selling on the
basis of subtle experiential differences and impressions, rather than
solely on features and functions.
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Remember that
customers are not loyal, particularly when discretionary income starts to
disappear. They will choose the best value and the most desirable
experience. If your product or service provides it, they will buy from
you. If not, they will buy from your competitor.
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Your marketplace
image is created inside your company. Your own people are your greatest
influencers and connectors to the marketplace. The long-term experience
your customers have with your product determines the brand image they
hold. Your customers’ experiences affect your brand image far more than
your marketing message – as does your customer service, your research and
development, your public policy and even your human resources policies.
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People trust their
peers. So, while advertising certainly enhances visibility, your highest
marketing goal should be to become a positive recommendation from the
trusted peer of your next customer. Listen carefully.
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You must include
search engine optimization in your marketing efforts. Tweak your Web
initiatives to generate leads by having the proper keywords promote top
placement in online search results.
From former Vistage
member Virginia Watters,
who headed a marketing/advertising firm in Tampa, Fla.:
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There’s a good chance
your competitor’s solution to the economic downshift is to pull back on
marketing and advertising. Take advantage of the lack of clutter in the
marketplace with messaging that will have more impact.
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Look at marketing
strategies that allow buyers to feel that they are minimizing risk.
Consumers are looking for reassurance during recessions, even if the
recession has more of psychological toll than actual hardship.
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Brand equity may be
particularly valuable. Well-known brands reduce uncertainty for customers
looking for security.
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Companies that sell
high-ticket discretionary items must understand the barriers to
purchasing, and the buying motivations that are unique in this economic
climate. Brace for a harder time than those businesses that provide
necessary items.
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Increasingly, many
companies now compete on a global scale. In addition to reaching out to
new world markets that may not be suffering through a slowdown, keep in
mind global competitors also may have an economic advantage. Choose your
new markets wisely.
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In a declining
market, monitor market share, not just sales volume. While all competitors
may lose some sales volume as the market shrinks, those who can maintain –
maybe even increase – market share will emerge in a stronger position.
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Know the behavior of
your competitors. Learn what they did in earlier recessions (such as the
2001 cycle spawned by the stock bubble burst) and be aware of their
financial condition since heavy debt can limit strategic options.
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Think public
relations. Good PR is more cost-effective than paid advertising. It may be
difficult to get the media’s attention, but once you do, chances are it’s
well worth it.
From Vistage speaker
Mitchell Gooze,
president of Customer Manufacturing Group:
If you start with
the premise that one purpose of marketing is to generate business, then
marketing should be more important in a slower economy than a faster one.
That’s because a symptom of a slowing economy is having less business than
before.
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Figure out as quickly
as you can what aspects of your marketing are working and then focus on
those strategies. The same goes with the company as a whole. Evaluate what
you do best and focus on those few things you do better than the
competition. This is what makes you different from your competitors who
are likely cutting back marketing dollars and staying competitive through
reduced pricing, which also reduces profits.
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Customers get pickier
in a slower economy. Be the best vendor in your space and make sure
everyone knows about it.
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At all times, focus
on the customer and not the competition. Think like a customer and
understand how they will find you and your brand different from the
others. In a slower economy, make sure customers that continue to do
business with you love it.
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Find untapped or
underserved markets. Just because you have a small slice of the market
doesn’t mean you can’t expand while the overall economy contracts. If you
plan well and execute soundly, you can gain more market share because your
competitors will lose business. Or, you can market your existing lines to
different audiences.
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Make sure the
customer begins to see the value of a purchase as quickly as possible. The
faster the customer figures it out, the faster they can buy again. People
are more cautious and may not appreciate a buy with a lagging ROI.
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