How to Market in a Bad Economy: What the Experts are Saying
Everyone wants to know. What’s going to happen to business in 2009? How can we maintain or even increase market share? What is the right thing to do to build business going forward?
I must admit that after having read countless blogs by national experts on the subject, I cannot say for sure I know the answer because I cannot predict the future. And I’m supposed to be one of the experts myself.
While one blog/book title I came across made me laugh (All Marketers are Liars) by Seth Godin, called “the Ultimate Entrepreneur for the Information Age” by Business Week, I’d be lying myself if I said I’ve known exactly what to do for the past 34 years in business. I haven’t. But I do have instincts and I have been fortunate to have been right about general principles of marketing for an entire career. Otherwise, I wouldn’t be here.
» But I digress. My purpose is to share marketing strategies for a bad economy recently touted by some of the marketing leaders of our country. Here they are:
1. Add a Chief Conversation Officer: an idea from John Jantsch of Duct Tape Marketing.
Founded on the idea that in marketing, talk is cheap and silence is fatal, a chief conversation officer’s duties would be to engage in dialogue members of the business and social community to deliver your company message. For example, this could include presentations at chambers of commerce, arranging seminars, social networking (in person and on the Internet), submissions to the press, blog development, etc.
My viewpoint: If you have the resources to hire a person for this function or are inclined to be socially motivated yourself, then more power to you. As a long-term strategy, this could prove valuable.
2. Focus on your Existing Customers: from Karen Scharf, an Indianapolis marketing consultant
Her reasoning: Current customers are easier to market to and sell to, since they already know, like and trust you. Rather than cutting back on your marketing activities, now is a great time to maintain or even increase your marketing. Many of your competitors are reducing their advertising and marketing, making it much easier for you to stand out.
My viewpoint: Knowing my own clientele with whom I have close ties, I would not find it a wise strategy to pressure them with spending suggestions at this very difficult time. For 34 years, they’ve called me when they’ve needed me. However, if your customer base is large and is not one of personal relationships, providing them with cost-saving buying opportunities may be a worthwhile activity.
3. Don’t Cut Prices! An idea by Dim Bulb Author and advertising critic Jonathan Salem Baskin, whose advertising blog was selected as one of the 50 Best in 2008.
His reasoning: People will still buy. We just have to come to terms with finding better ways to sell. And cutting prices isn’t one of them.
My viewpoint: Having experimented with price reduction for clients many years ago, I know for a fact that it doesn’t work. However, sales (discounting prices for a special period) are used universally as a technique to move merchandise but can erode intrinsic value as promoted through branding.
4. Focus on more Direct Forms of Revenue (i.e., coupons!): an idea from Louie Bernstein, a computer expert since 1976.
His reasoning: Reduce “image advertising.” It’s time to show good, measureable results. Coupon redemption programs and the use of promo codes can be very effective. When the economy is down everyone is looking for bargains. With coupons and promo codes you also get to track what’s working and what isn’t.
My viewpoint: Ironically, this idea contradicts idea number 3 above. However, I know from personal experience that coupons do work in the right industry and application.
5. Diversify: An idea from Sonia Simone, Copyblogger, selected as one of the 50 Best Marketing Blogs of 2008.
Her reasoning: Try something new this year. Get outside your comfort zone. Move beyond what you’ve always done. This is the best possible time to create something remarkable and new.
My viewpoint: I wholeheartedly agree with this suggestion. For example, if you have a manageable customer base, use direct mail to reach them in an unexpected way.
6. Know Thy Customer: An idea from Bob Rentsch, Vista Consulting
His reasoning: How well do you know your customers? AND…How well do your customers know you? The business world is full of stories of customers who didn’t make a purchase because they didn’t know that the company they already had a relationship with offered a product or service they needed. Regular communication with customers and prospects is one way to help make sure that doesn’t happen to you – and email marketing makes it cost-effective. If you don’t have a regular newsletter, create one … NOW. But, a word of caution, make sure that you are committed to keep up the effort in future months.
My viewpoint: While I am a little squeamish about over-emailing my precious clientele with a one-size-fits-all communication as opposed to my usual very personal emails, I recognize that when Amazon emails me their specials, I tend to check them out because I’ve bought from them before.
7. Increase Marketing Activity! An idea from David Poulos, Granite Partners
His reasoning: Those companies that are so bold as to increase marketing activity stand a greater chance of taking market share from their less aggressive competitors and can rule the category if the downturn lasts long enough. The smart money here is being used to take market share from your more timid competitors, by increasing presence and exposure, and cutting other less-than-mission-critical expenditures for a short period to accomplish it.
My Viewpoint: Proceed with Caution. Make sure you target market and utilize guerilla marketing techniques (i.e., things you can do yourself at no cost) to preserve your capital.
Tags: Build Business in 2009, How to Maintain Market Share in 2009, How to Market in a Bad Economy: What the Experts are Sa
May 6th, 2010 at 4:55 am
I think, to be a good affiliate marketer is the hardest thing to do as a blogger, you must have huge traffic to get the possible buyer and also you have to build your own audience, because honestly i’ve never made a single sale with my first blog
May 14th, 2010 at 12:36 am
Fantastic article as always, I am seriously considering something along the lines of an affiliate section on my own site… so very timely post.
June 16th, 2010 at 8:12 am
Some very good ideas. Reminded me of some things I know and other tips which I could try. Thanks for the post.
June 18th, 2010 at 3:11 pm
It sounds like you’re creating problems yourself by trying to solve this issue instead of looking at why their is a problem in the first place.