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During
a recession, most marketers are happy just to retain
their market share and hold their ground. Well, consider
this. There’s strong evidence that shows that
continuing the investment in advertising and marketing
during a recession can actually increase a brand’s
market share, especially if competitors cut back on
marketing dollars. Add some retooled strategies to
address the current marketing conditions and consumer
behaviors, and you may very well be able to advance
the ball. Here are seven strategies to help:
1. Focus on the Consumer
It’s essential to understand how consumers are
responding to the recession and how it has changed
their purchasing behaviors. Which purchases are they
choosing to postpone? On which affordable luxuries
will they continue to splurge? Now more ever it’s
imperative to align your marketing with the mindset
of the consumer. Begin a dialogue with your current
and prospective customers with the goal of understanding
their hopes, dreams, fears, and everyday challenges.
Then, re-align your product offerings and marketing
to respect your core prospect’s budget, time,
values, and lifestyle. Consumer-focused companies
will do well during a recession. Companies that are
self-absorbed will not.
2. Choose Your Battles Carefully
Use your marketing dollars wisely by focusing on the
brands in your portfolio that are most likely to get
traction. When developing a marketing campaign, focus
in on the product benefits that you believe will resonate
most with your core customers. Even during a recession,
it’s not always a low price that wins the day.
Perhaps added value, better service, or simply higher
quality should be your selling point. Above all, stay
true to your brand’s raison d’être.
3. Capitalize on New Opportunities
As with any change in consumer behavior or market
forces, a recession provides unique opportunities
for your brand. Develop products, packaging, and service
options to respond to current market conditions as
well as projected changes. For example, several years
ago many grocery chains began rolling out attractive
meal options such as ‘take and bake’,
‘take and heat’, and ‘take and eat’
dinners. Now that consumers are dining out less but
still have limited time for food preparation, those
forward-thinking grocery chains are poised and ready
to tap into those ‘dining out’ dollars.
4. Be Sociable
In a recession, consumers spend much more time researching
their purchases, especially on durable goods. Therefore,
positive customer reviews, awards, expert opinions,
even customer comments on blogs can be incredibly
influential in driving sales. Since most research
these days is conducted via the internet, make sure
you closely monitor what consumers are saying about
your brand on blogs and forums. Today’s satisfied
(or dissatisfied) consumer has the opportunity to
reach influence tens of thousands of people with news
of his experience with your brand. Work closely with
your customer service department to address small
problems before they balloon into a marketing and
public relations nightmare.
5. Strengthen Your Connectors
Is it easy for your customers to find and purchase
your product? Is your website easy to navigate based
on the online behavior patterns of your different
constituencies? Some basic usability testing on your
website could help identify navigation problems that
could be costing you sales. As family budgets tighten,
consumers will expect better quality and service for
their hard-earned money. Companies that make it easy
for their customers to find and purchase their products
will come out ahead.
6. Don’t Forget Your Current Customers
Reach out to your existing customer base. When finances
are tight, consumers are more likely to purchase from
a trusted source. Leverage relationships with your
satisfied customers to sell product upgrades or supplemental
products or services that they may not even know you
offer. Consider offering a discount on a future purchase
when a satisfied customer agrees to write an online
review of your product or if they will recommend your
product or service to their friends and associates.
7. Be Consistent
When faced with an economic downturn, some companies
shoot from the hip, jumping into new mediums with no
real plan for integrating their brand message or measuring
the return on the investment. This is the time for calculated,
deliberate marketing decisions. Any successful marketing
strategy requires good research, short and long-range
goal setting, consistency, good metrics for measuring
ROI, and the determination to dig in for the long haul.
As consumers become more cautious and contemplative
with regards to their spending, it’s simply going
to require a more consistency and persistence to move
the needle. Develop a recession marketing game plan
– then stick to it.
Doug Burton is a
business writer, marketing consultant, creative director,
and 20-year advertising veteran. He works with consumer
packaged goods companies to develop innovative audio,
interactive, and out of home advertising campaigns.
His company, Saltworks, specializes in consumer-focused
marketing and advertising. He can be reached at dburton@progressivemarketer.com. |