Opportunity in a Down Economy

Guest post by: Michele Harris

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Opportunity in a Down Economy

In an economic downturn, most businesses cut costs, with marketing usually top of the list. This is a big mistake. Several documented studies showed conclusively that advertising aggressively during recessions increases sales and profits. Businesses that cut back on marketing often find themselves in a worse position when the economy rebounds.How has your company coped with the recent recession? Are your team prepared for the opportunity?In challenging times, things change. This can be a good thing for your business. Here’s why:

Competitors Cave: Your competitors may be more freaked out than you are, and likely doing less. Are they pulling back their advertising? Selling out? It’s a –great- time to advertise with less noise and clutter.

Hungry Marketplace: Everybody’s looking for more business. There are tons of great deals and bargains out there. (Your company could be one of them.)

Vendor Valuation: Cost cutting often means reevaluating suppliers. Allegiances lessen. Prospects you’ve been courting for years may now be more receptive. Smaller businesses have a competitive advantage.

To survive and thrive in economic stress:

-Hold on to your current customers: Retention is key. It’s significantly less expensive to get more business from current customers than it is to acquire new ones.

-Acquire new ones: New customers are the lifeblood of any business. Scrutinize your sales pipeline: Who are your best customers? Where are you getting your lowest cost per lead? Target carefully.

-Refresh your brand: That same old pitch you’ve been using for years may not resonate today. The market, customer and competitor landscape is different. Sharpen your messaging. Crystallize your value proposition.

- Market aggressively. Customers are skittish. Marketing can show you have stability and solutions to customers’ needs. Potential customers can’t buy from you if they don’t know about you.

The reality is that most businesses get 80% of their business from 20% of their customers. This business principle is your opportunity: You don’t need a million customers—just the right ones.

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Article Tags: Marketing, Marketing in a down economy, recession marketing

About the Author: Michele Harris RSS for Michele's articles - Visit Michele's website   Marketing expert Michele Harris has 20 years experience developing revenue-rich marketing programs for Fortune 500 companies and leading business development and client services for premier advertising agencies. As founder and Chief Matchmaker of Smarti Solutions–the leading marketing agency selection firm for the mid-size marketplace—Michele provides clients with sales and marketing consulting, an unparalleled, intimate knowledge of the boutique and mid-size agency landscape and an expert selection of qualified advertising agencies, PR firms, media and marketing companies across industries, capabilities and other criteria. Michele has been covered by The NY Times, NY Post, PR Week, Inc. Magazine, CNN’s Money Magazine and Crain's BtoB Magazine. To get sales and marketing guidance or assistance finding just the right advertising agency, PR firm or marketing company for your business’ needs, visit http://www.getsmarti.com        Click here to visit Michele's website More from Michele Harris Issuing an RFP Website is an Ad Seducing Prospects 10 Ways to Woo New Clients Opportunity in a Down Economy RFP Response What Clients Want in RFPs

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