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Marketing in Tough Times
While we haven’t felt the recession on the same level as the rest of the world, there is no escaping that 2009 isn’t going to be particularly easy. Business confidence has taken a bit of a knock, and despite interest rate cuts, the manufacturing sector has contracted, signalling a reduction in consumer spending.
So it makes sense to recognise that you are going to have to do something special if you want to grow your business till we move into the next growth cycle.
Failing to address the current market circumstances is probably the worst mistake you, as a marketer, could make. Instead of business as usual, your challenge is this:
1. Re-organize your marketing tactics to align to your business environment and your changing objectives
2. Focus on a long-term marketing strategy
A knee-jerk reaction to sales declines that focuses on short term solutions could well be detrimental to your business in the long run. In fact, the American Marketing Association suggests that the worst mistake marketers can make during an economic slump is halting or reducing spending on key marketing programs.
Instead, focus on 5 key marketing principles:
1. Focus on value, not simply price. Highlight the benefits that add value to your product or service. These might include expertise or personal service or more clearly quantifiable benefits such as guarantees, installation or deliveries.
2. Sustain your brand. Strong brands are more resilient, and cutting all marketing will weaken a brand that is being threatened by the downturn.
3. Re-analyse and re-define your target market. Focus on market segments that provide the greatest return. Decide which customers or market segments are least profitable and have the least potential and reduce investment accordingly.
4. Re-evaluate all your traditional marketing channels. Are they still delivering your re-defined target market? Demand cost-efficiencies and clearly defined information on the markets you selected media is reaching. Consider alternative media that you may have neglected in the past.
5. Prepare for the turnaround. The upside to an economic downturn is that it is followed by an up-swing! Make sure your company will be in a strong position when the market turns. In addition to a continued investment in marketing, you might want to consider product innovation or strategies for retaining key staff.
Marketing in tough times is a challenge, but with effective marketing you might even plan to grow your business in 2009. Download a Marketing Strategy Outline from our home page, or contact ann@octarine.co.za to find out how Octarine can help you formulate and implement an effective marketing strategy.
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