Marketing During Tough Times & Recession

[PaulSimister]

I have bitter memories of the last UK recession back in 1990-92 and I'm getting increasingly concerned about the economic outlook in the UK and US.

I have just read and reviewed Guerrilla Marketing During Tough Times (http://businesscoaching.typepad.com/the_business_coaching_blo/2008/06/guerrilla-marketing-during-tough-times---45-stars.html).

It is an excellent short primer on how to take advantage of the opportunities that the tough times will present.

Why do I think there will be marketing opportunities?

Because at the heart of every problem lies an opportunity for someone to sell a solution.

And no I'm not just talking about people who sell business advice.

If you have any method or technique that reduces cost or makes activities more effective, productive or efficient you will find that the pressure to improve performance creates interest.

So have you read "Guerrilla Marketing During Tough Times" and if so what do you think about the book?

Do you have any tips to help small businesses survive and prosper during the threatened recession?

[bsfweb]

1. Keep Existing Clients Loyal.

Gaining additional business from existing clients cost far less than developing business from new sources. While it's still important to develop new clients, it's absolutely critical to keep the clients you have and make sure they are thrilled with the work you provide to them. Build loyalty through excellent service, proactive advice and genuine concern for your clients business.

2. Be Opportunistic.

Make your business visible to viable markets. Analyze where paying customers come from and focus investments in those areas. At the same time, keep a critical eye on areas that aren’t profitable and consider whether or not these targets will be fruitful when the economy turns around. If you find any audiences will not bounce back in a meaningful way, discontinue servicing those areas and focus on the future. A poor economy offers you the time to re-evaluate target markets. Study how market segments have shifted over time and how you may adjust your service accordingly.

3. Understand your Audience.

Be aware of how your clients are doing and if their business needs have changed. Help your customers weather the economy and they will remain loyal. This is a solid business practice regardless of how the economy is faring. Take the time to speak directly with your customers so that they know you are there to help. Learn about the industries that your clients work in, understand how you fit into that industry and offer helpful insight where appropriate.

4. Partnering.

Identify other industries or professional sectors that want to attract the same client profile as you, but who aren’t in competition with your services. By combining efforts to market towards the same audience you cut your investment in half. Some examples of ‘partner-marketing’ include seminars, events, trade shows and other presentations. Additionally, there is a benefit to potential clients by offering ‘one stop learning’. When selecting your partner organization, be sure to avoid direct competitors and organizations that may present a conflict of interest in developing business. Additionally, make sure any potential partners share similar business development practices, philosophies, goals and budgets. You want to be sure that you are working together to produce a desirable outcome for both organizations.

5. Continue Advertising.

Carefully assess your current advertising campaigns by analyzing how many ads you run and where they are placed. Do not give into the temptation to cut all advertising. There is opportunity for success in advertising in a down economy. In down times, fewer businesses will advertise, thinking it is an easy place to save money. This trend creates less competition for existing ad space. More available ad space can provide better negotiation opportunities for the media buyer. Most importantly, though, more ad space decreases advertising clutter, making your ads more visible. Work with the media outlet to strategically place your ads in more visible positions and be sure to include a ‘call to action’ so that you can trace any direct business.

[sharon33]

Those are some great points. I will keep them in mind to help grow my small business.

[belauk]

Great tips by bsfweb, when this hard time of recession will end, what do guys think??

[Rob]

Such a simple question and yet a tough answer! For some businesses the dreaded 'r' word has brought an end to its existence - which in some cases was perhaps envitable eventually.

For others this is a time of abudance - debt collectors, financial advisors, car repairs (who wants to buy new??).

So for some the recession has never happened; for others, hard lessons have been learned.

This is why it will be difficult to call an end.

[PaulSimister]

Different sensitivities to the economic cycle mean that businesses will see recovery at different times.

It doesn't follow that the early sufferers (in the UK that was the housing market and cars) will be the first out since they are both confidence purchases and people will wait to be sure.

We also need to distinguish between:

Things are getting worse
Things are about the same
Things are getting better

I have read some interesting stuff about whether the recession is likely to be V shaped with a quick recovery after the turning point or U shaped where we continue along the doldrums.

More scary are the predictions of a W with a small recovery before another dip or even an L where there is no sign that it kicks back to an average of say 3% GDP.

There has been such a massive public spending and monetary boost given to the UK that is unsustainable that unwinding it could create a long period of slow growth.

We are starting to see the political debate about the potential for a 10% cut in public spending which I saw someone equate to a 15% increase in tax. These are massive numbers but the UK can't keep spending more than it earns.

It doesn't make sense for an individual or business and it doesn't make sense for the government.

[Harry]

It's not time to cut the marketing budget, it's time to re-evaluate your marketing and analyze what is working and what's not. Take time to explore new options of marketing that cost less, but can still deliver the results you are looking for.

[survey]

During recession it becomes a necessity for any company to thoroughly research the customer. Instead of cutting the market research budget, one needs to know how buyers are redefining value and responding to the recession.

Contrary to what people might say, recession is not the time to cut advertising. It is a fact that companies that increase advertising during recession, when competitors are cutting back, can improve their market share and returns on their investment than during good economic times.

[Kenny]

It is also essential to make adjustments in one's product portfolios while marketing during recession. Tough times usually favour multi-purpose goods over specialized products. So weaker items in product lines should be pruned or should take the backseat while preparing a marketing strategy.

[breath]

Excellent post. Thanks for the useful information.

[andybrow]

We know the anxiety is rising for many of you as the economy falters. We know it is tempting to begin the slashing process of your expenses. And, we know that marketing is one of those areas that typical gets the brunt of those budget cuts. We understand...but you must resist!

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Best of Luck.

[garethcn]

very nice informative post...


i will keep this things in mind.