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Marketing Opportunities in Difficult Economic Times

Written by: Michael Carney

Article Overview: "Business as usual" is NOT the most effective strategy for surviving/thriving during economic downturns. Consumers don't stop buying during tough times but they do buy more cleverly. And they spend A LOT more time researching their purchases, seeking advice from friends and associates and otherwise doing their homework. Recession Marketers need to refine their tactics as well. In this article we share 7 essential tips to help you sharpen up your offerings (and actually most of these tips contain useful advice for marketing more effectively in ANY economy, good or bad). You won't blossom in 2010 simply by acting as if it's business as usual. Nor is it a time to hide your budget under a bushel. As one major advertiser summed it up: "When times are good, you SHOULD advertise. When times are bad, you MUST advertise."

Marketing Opportunities in Difficult Economic Times

Tough times don't last but tough marketers do.

"Business as usual" is NOT the most effective strategy for surviving/thriving during economic downturns. Consumers don't stop buying during such times but they do buy more cleverly -- so Recession Marketers need to refine their tactics as well. Here's the first seven of some twenty tips we've assembled to help you sharpen up your offerings (and actually most of these tips contain useful advice for marketing more effectively in ANY economy, good or bad): 1. Get a better understanding of your customers.

How much are they hurting? Are they affected more (or less) than most by the housing slump, by rising food prices or the cost of living? Do your best customers still have a job? Are they still willing/able to buy products or services in your category?

Typically, consumers spend more time searching for information and validating their preferences in tough times.In fact, 70% of them are now doing more research and comparison shopping online, compared with 38% last year, according to PriceGrabber.com research (October 2009). And they then negotiate even harder at point of sale. Consumers are also more willing to postpone purchases, trade down or buy less. Yesterday's must-have features are today's can-live-withouts. The economic slump is even impacting on Christmas gift-giving (53% of us won't be giving gifts to co-workers these holidays, according to the PriceGrabber.com study).

So, as smart marketers how can you get a better understanding of your customers? Invest in some low-cost research (even better, do it for free: start with SurveyMonkey.com) to establish your prospects' current views and changed circumstances -- and then devote a decent slab of time to working out how you can tailor your offering to their refurbished expectations.

2. Keep tabs on your competitors.

Are they cutting back on advertising or marketing spend? Are they focussing on more value-based offerings or their bottom-of-the-range models? What's happening to their sales and market share as a result? Are you seeing a new group of competitors (who've previously aimed at better-heeled customers) suddenly becoming thrifty and targeting the economy-conscious? Do your homework, throughout your organisation -- turn all your people into supercharged Competitive Intelligence gatherers (it's easier than you, and they, might think). Then review the results and develop an aggressive action plan in response.

3. Don't cheapen your brand.

It's very, very tempting to price-cut to survive. But a word of warning: whatever the consumer loves about your brand in normal times (image, features, benefits), your brand must continue to convey those same associations in more thrifty times -- otherwise the brand may become so devalued that it will simply drop out of your consumer's shopping basket when times are tight.

4. Leverage that low price.

On the other hand, if you are the lowest-cost supplier, this is the best opportunity you'll ever have to connect with those whose brand sensibilities are usually somewhat more premium. But focus on value rather than price, so that your newfound customers don't slip away when the good times roll back.

5. Look for Big Bang media opportunities.

Every penny counts in times like this. So look for opportunities to leverage sponsorship, promotion, media events and other high-profile happenings. Don't settle for ordinary - multiply those dollars with high-impact connections.

6. Remind rather than Repeat.

Spread that dollar further, making use of more short-duration and small-size advertising material. Normally use 30 second TV ads? Add in 15 second executions with the same visual and audio cues to sprinkle that budget more widely. Turn full pages into half pages. Reinforce TV on radio or newspaper ads in DM or magazines or online. Yes, you'll need to ensure that your messages remain effective in their alternate variants -- nothing like a creative challenge to sharpen those neurons!

7. Take your brand to the streets.

Consumers become more questioning in tough times, less likely to invest in something new - they're more inclined to stick with the tried and true, where they already know the value-for-money equation. Your mission: to take your brand experience to prospects via non-traditional outlets such as free samples, events and other experiential initiatives that allow consumers to try before they buy -- so you take on the risk (of dissatisfaction or unsuitability) rather than them. And look to money back guarantees for that extra consumer ring of confidence. If your product delivers on its brand promise, this could be your most effective method of connecting with new customers during a recession.

You won't blossom in 2010 simply by acting as if it's business as usual. Nor is it a time to hide your budget under a bushel. Advertising in a recession is a necessary investment in current and future profits, not a drain on resources.

As one major advertiser summed it up: "When times are good, you should advertise. When times are bad, you MUST advertise."

PS If you're wondering about the rest of the twenty tips we mentioned - they're available to subscribers to our Marketing Rag newsletter who quote this article when signing up for their subscription.

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  Making Money in an Economic Downturn
  Perceiving Victory

Article Tags: christmas gift, circumstances, co workers, comparison shopping, consumers, economic downturns, economic slump, food prices, giving gifts, holidays, housing slump, offerings, point of sale, pricegrabber, prospects, recession, slab, smart marketers, tabs, tough times



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