3/26/2008
How to Market Your Way through the Recession
Have you noticed — the economy is brutal! Yes, the market went up more than 400 points the day before this writing, but that didn’t solve all our problems.
- Retail is weak
- The housing market is deep in the tank.
- The banking industry is unstable
- Inflation is on the rise
- Commodities are high (buy a tank of gas lately?)
- The job market is iffy
How can your business thrive in such an environment? I have a one word answer — marketing.
In a shaky economy, companies like to cut costs, and one of the first places they look is the marketing department. Ironic, because a downturn is precisely the time when marketing can be most useful. When the economy soars, it’s possible to make money with a bad plan or no plan. But when the economy sours, it’s impossible to make money unless you have an outstanding plan. Here are a few tactics that can turn the recession into somebody else’s problem.
1. Find robust niches and cultivate them. No matter how bad business gets, some sectors will be flourishing. These days, agriculture, manufacturing, exports, and pharma are among the strong. What can your companies offer them? Articulate a compelling value proposition and take it where the money is.
2. Enhance and emphasize customer loyalty programs. When the going gets tough, buyers start shopping. They’re under a lot of pressure to produce short term savings, even if it means jettisoning a supplier like you who’s done a bang up job for years. A strong customer loyalty program gives customers measurable and meaningful reasons to stay with you.
3. Innovate. Now is the time to roll out a new product or service. Remember how I just said customers are shopping, looking under every rock for savings? As a former buyer, I can attest to the fact that a lot of those rocks have been turned over and over and over. If you can develop a truly new way to reduce cost or improve efficiency, you will grab my attention instantly. In good times, it’s hard to get companies to change because they’re just too busy. In bad times, no idea is too new to consider, believe me.
4. Start a business blog. In a boom, companies have a lot of money and no time. In a recession, it’s just the opposite: companies have no money and a lot of time. The latter condition lines up perfectly for a blog initiative, because blogs require an insignificant outlay of cash but do require a fair amount of time to ramp up. Because a blog allows customers to talk to you, share ideas, and get to know you as people rather than as a faceless corporation, it inspires loyalty and leads to innovation — elements we already identified as recession-proofing necessities.
What else can marketers do to overcome the recession? What techniques and approaches are you using to thrive in bad times?
