5 Marketing Myths For The Recession

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5 Marketing Myths For The Recession


Oct 30, 2009 by Mark Maier

MediaPost recently explained "8 Guaranted Ways to Kill Your Brand", which was good but not maybe relevant to what we see in Broadcast and Interactive marketing and selling on the streets.  I've distilled it down to the 5 myths that effect us day-to-day.....

"Myth #1 - Follow the leader
Growing and innovating by mimicking industry leaders is a bad practice in a blossoming economy, and even more dangerous in a recession. Recessions (like all moments of crisis) are great opportunities for challengers to gain a leadership position if they rethink their category and offer a clear market alternative. FedEx managed to upset the unchallenged leadership of rival UPS when, in 1977, it benefited from a strike at UPS and the bankruptcy of REA Express.

Myth #2 - Better safe than sorry

When recessions hit, many companies' first reaction is to focus on the short term by cutting long-term cost such as innovation and brand building. History demonstrates that this is a big mistake. In the 1974-75 recession, Ford cut marketing spend by 14%. Chevrolet increased spending, particularly for its fuel-saving economy models. Chevrolet's market share rose by two percentage points, while Ford lost share. It took years to regain its previous position.

Myth #3 - Recessions are bad times to introduce new brands

Consumers have emerging needs during recessions that new brands can address. During a six-year recession in the 19th century, the Denver area was growing as rail lines opened to the West. The U.S. desperately needed a drink. A 26-year-old Prussian immigrant named Adolph Coors opened what he called the Golden Brewery there. It eventually became one of the largest brewers in the world.

Myth #4 - Value = price

Value is not just about a price tag. It is about perceived value for money. Investing in innovation, new formats and sizes will do a better job of proving perceived value than playing a pricing war.

Apple has managed to sustain the success of the "i" story through frequent product introductions, short product life cycles and quick pricing shifts. So don't force your consumers to trade down for a commoditized offering. Give them a reason to trade up to their perceived value at the same price.

Myth #5 - Consumers are marketers

Many marketers still believe that consumers will tell them what they really want. Unfortunately, no matter how many hours you spend behind a two-way mirror, consumers can react to the next big thing, but they will not create if for you. When entire consumer mindsets are being redefined (from "greed" to "good", and from "me" to "we"), what marketers should do is analyze what drives macro societal shifts, identify if and how they are likely to impact their consumers' attitudes and leverage current technology to address them. "


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