Marketing During a Recession
Studies have shown that companies that continue to market during tough economic times often see growth during those times, where businesses that cut their marketing budget will often see a decrease in sales.
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.
We cannot ignore these financial difficulties that our country is facing, but today I want to help you understand the importance of marketing during the recession, learn how to set a marketing budget that you can work with, and explore popular no cost to low-cost marketing tips that you can begin implementing today.
“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” Henry Ford
No one ever said that growing a business was easy – but someone is making money out there and it might as well be you!
Companies that ‘bury their heads in the sand’ by cutting back on prospecting while waiting for the economy to improve are leaving the window wide open for competitors to gobble up sales.
Counterintuitive as it might seem, bad economic times can be great for businesses with disciplined sales and marketing teams and high impact programs to forge a path to success. Implementing these sales and marketing tips will help ensure your company is one of them.
Diversify for Development
If your business depends primarily on one industry that is being hit hard, look for other sales avenues within it. Identify new channels, product applications and partnerships that compliment your business. You might have to ‘tweak’ your marketing message and/or service offerings to address new needs. The result? Increased visibility and awareness in the marketplace, prospecting
opportunities and broader market appeal.
Get Creative with Pricing
Pricing and budget cutbacks are often show stoppers in slow times. Avoid
losing the sale by offering extended payments, limited time offers, discounts
for large purchases and long term engagements or picking up part of the expense to get customers from ‘no’ to ‘go.’ In tough times, a little good will goes a long way.
Timely piece Laura. I whole-heartedly agree that now is the time to market your businesses and organizations. There are many opportunities out there. Businesses who show that they are assertive during the down times lay the foundation for increased growth when we are well into a recovery. This is the time to differentiate yourself from the competition.
Laura, your words couldn’t be more accurate or timely and of course they apply in every country.They certainly do here in the UK.
I often tell my clients that when times get hard it is often easier to find new business. OK this maybe counterintuitive but it is often true. So many businesses cut back during a recession that there is actually less competition out there. Marketing also often becomes cheaper – just look at the advertising bargains you can get in your local media. Not only that but all the low cost marketing strategies and tactics are still available and yet so many businesses are so convinced that they should tighten their belts that they even forget the free marketing they could use.
The result … a chance to grab market share and grow really fast.
Everyone reading this blog is already ahead of the opposition. why? Because they are aware enough to seek help and advice …all they now need to do is apply what they learn.
Laura,
Awesome information. Quite the series that ‘keeps on giving’, as I read. You did a great job.
It’s interesting to note after 9-11 the fear was more an internal self-preservation of family and life. Even the ‘basics’ were threatened. So risks were, by far, out of the question. However, in this current economic strife, more than ever, stepping back, returning to the basics (of business), refining what you do best, and focusing on what you have control over, IS the best we can do.
Sustaining your basic processes, making the best widgets we can will breed stability, will cultivate confidence, and ultimately encourage growth oriented environments.
Will we achieve normalcy? Never. Now is now. We can’t look back. Create, invent, remold, rewrite. WE make it the beginning of the end. It can be an exciting time. Let’s just do it!
thank’s….:d
I am a brand and social media strategist focused upon the application of social networking tools, and platforms for business, which compliments a long career as a store-based retailer, and merchant. It is absolutely imperative that specialty retailers and marketers in general become better informed and immediately put social media initiatives in place for their business. I predict it will change how consumers transact as trusted “relationship-building” are so crucial today.
I support your ideas,I’m interested in marketing,I come from china,however I really want to make friends with you and I wish receiveing your reply!Thank you very much!
I fully agree with you. And we can see that all leading corporates and marketing consultant like us gives the same View.Thanks. Great.
So where can we find opportunity in these market conditions. As one example use your products and services as currency in exchange for advertising with an added benefit that they only actual have an advertising cost when a consumer walks in the door (Pay for performance). This is a quasi offline model of Google Adwords. Use an empty seat – your excess capacity, the extra hour of labor that would be idle otherwise and turn it into an opportunity to wow a new customer with your products and services – all while providing a great deal for the consumer, which is so important in these days.
It is all providing a benefit to all participants in this triangle of relationship – retail venue, distribution channel and the consumer. The consumer wins getting a great deal, the Restaurant or Golf Course, wins getting a new customer and the distribution channel i.e. Gift Card Malls win as well – providing them a higher margin, consumable item that consumer actually need and want in these times and buy all year long.
You do not have to be McDonalds or Wal-Mart in a recession to beat expectations. Turn over a few stones and see how you can solve a problem for your consumers and clients in these times and you will be ahead of the curve, and if you are lucky you may just be in the right spot at the right time!
isay welldone!.thanks for give for encouraging others .i also believe what in your comment
I agree with your many companies are even laying off employees, its suggestion is keep passions and marketing will work.
mm… informative
Actually a very good, longer article addressing this top that I found on bizsugar – http://www.davekahle.com/salesblog/?p=18
Thanks for your accurate analysis Laura. It’s not about cutting the merketing budget, is to modify the dynamics. In simple words, what i would say is… less marketing would become in less sales!
I have a different point of thought. In my opinion, marketing budgets can and should be looked at closely and possibly even cut. Like all other departments, everything should be looked closer.
There are low hanging fruits in every department and all departments and functions should look to function more effectively with less budget.
Now this doesn’t mean everyone needs to work harder and longer for less pay. It just means that we need to get more creative and more effective.
There are many ways, marketing can be more effective:
#1. utilize search engine optimization to drive customers to the website via search results
#2. shift more resources to organic traffic source to site rather than PPC (pay per click)
#3. create effective barters that benefit everyone involved
#4. collaborative marketing efforts with companies offering related products/services
#5. focus on viral marketing and marketing that’s word of mouth in the real world and online
…
That’s all I can think right now. It’s half past midnight here. Good luck to everyone! Please feel free to visit our site at the link below. Cheers!
it’s Good and I really enjoyed on it, I will be back to read more from you about business budgeting.
Im a college student and I’m in need of an idea on how marketing… thanks for your blog!
All your information is invaluable, thanks. I work as an advertiser for a small co. that’s starting out on indoor and outdoor advertising products. With the recession many companies are cutting back on their marketing, how do I convinience marketers to advertise and advertise through our products
Couldn’t agree more – the smart marketer understands that marketing isn’t about riding tides. When times are tough and the tide is receding, the answer isn’t to shut off on marketing and advertising, but rather to seek out creative and cost-effective solutions to keep getting your brand name out there.
This is a tough one isn’t it as it is very difficult to convince businesses to increase their efforts when economic situations don’t warrant spending. But as you have so clearly stated this is the best time because others will be cutting back on their efforts and you can get in there and create awareness and perhaps improvements over the competitors and therefore catch some new customers.
If you can adjust your product slightly – say selling repair products instead of the entire car – until the recession subsides, you can take the time to earn the trust of an entire body of new potential customers. This time is useful for relationship building!
Besides, investing in new sales efforts might not be hugely expensive (see http://seoconsultantsdenver.thewebinfocenter.com )
Very valuable!
As Yogi Berra might say, business success needs 50% dedication to product and 100% to marketing! In any time, a failure to market is like trying to run your car without gas…it only runs downhill.
Thanks!