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Gaining Market Share During a Recession: 7 Strategies for Success

 

by Doug Burton
 
 

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.
 
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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.
 
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