Marketing Strategies for Tough Times

Be More Aggressive

Paul Willis, president and CEO, Cypress Systems, said due to unique opportunities, his company is spending more than ever before on marketing and brand awareness. “Our largest expansion is in the area of trade shows and trade show support,” he said. “We are choosing to spend our marketing dollars on getting in front of our customers. In general, as with all areas you must place priorities on specific spending decisions. I do not think we should hunker down and shut down our whole marketing effort, but at the same time we should pick those efforts that yield the greatest return.”

Simply put, advertising and marketing during an economic downturn should be regarded not as a drain on profits but as a contributor to profits. Increases in market share brought about by advertising and marketing can be achieved more cost effectively during a recession. A company that advertises aggressively during this period will be better placed to increase profitability once the market in which it operates returns to a condition of stability or expansion.

“This is the time to think out of the box,” said Ray Wolfson, president of the Matrix Marketing Group. “You need to attract attention during a recession and it can be a time to push ahead of your competition.”

Marketing Strategies

Here are some strategies that can help a company thrive in recession economy:

• Increase the advertising budget. Increasing spending increases a company’s share of voice. If your competitors cut back, your message has the chance to grow stronger.
• Develop a strategic marketing plan. Don’t waste money advertising the wrong message in the wrong place and to the wrong audience.
• Utilize sponsorships. This type of awareness advertising and promotion gives a business valuable exposure to targeted, core audiences.
• Stay in contact with loyal customers. Keep in touch and let them know what you have to offer.
• Product introductions. Don’t hesitate to introduce well-conceived and properly marketed new products when the competition is weak.
• Sustain awareness. Advertising works cumulatively—remind people frequently about your brand or they’ll forget you.
• Don’t “cheapen” your advertising. Trying to save on creative or production costs can be a kiss of death, and customers will notice.
• Enhance product and company publicity. Maintain a media presence with a smart, effective, ongoing public relations program. Strengthening relationships with key media will provide long-term financial benefits.

Lisa Marie, CEO and president, ReddRox Inc., said a company’s marketing program and strategies should be the same in or out of a recession. “People who have heard of me and have watched ReddRox focus on grassroots marketing for years, have seen how successful we’ve been, literally hitting the streets and giving our product to consumers as well the supplement industry at trade shows and conferences so they can tell others,” she said. “Also, continuously get involved in very solid non-profit organizations, schools and churches in the community. By doing this, the company and its staff build relationships, get great feedback about their products and are more in touch with people than just percentages. It’s real people doing business with real people.”

A recession can help you strengthen the position of your company in your marketplace. And it could be the perfect time for increasing your advertising investment. Continuing advertising and marketing during a recession may not only be a smart thing to do, it may be a business opportunity you can’t afford to miss.

Sheldon Baker is senior vice president and partner of the Baker Dillon Group (BakerDillon.com), a brand development, advertising and public relations firm located in Fresno, CA. He is also a director of the Consultants Association.