Marketing Your Way Through A Recession
Jul 1, 2008 by Mark MaierWe posted some interesting consumer information yesterday, that taken the wrong way, puts a negative slant on the economy. The report stated that 64% of consumers have changed or cut back household spending habits in the last several months. What that means for us in the Broadcast Industry is a need to reinforce some key values for our clients marketing strategy and for our own strategy as we serve those clients. Harvard Business School professor John Quelch reminds us to reinforce 8 factors when making plans for the remainder of 2008 and 2009 budgets:
1) Research the Customer - You need to know more than ever how consumers are redefining value and responding (In-store surveys, Secret Shoppers, Customer exit interviews, know your clients with the CMP, regular lunch meetings with your top clients)
2) Focus on Family Values - Use family scenes as Greeting Card Sales, Telephone Use, and discretionary spending on home furnishings and home entertainment will hold up well, as uncertainty prompts people to stay closer to home and connected with friends and family (Promotions that tap this interest area)
3) Maintain Marketing Spending - This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. (Reinforce the Buyers Awareness Cycle, use the EFS Generator to show ROI, utilize Optimum Effective Scheduling)
4) Adjust Product Portfolios - Marketers must reforcast demand for each item, advertising should stress superior price performance, not corporate image. Gimmicks are out; reliability, durability,safety, and performance are in. (Quality copy with a unique selling proposition and clear call to action)
5) Support Distributors - Now may be the time to drop your weaker distributors and upgrade your sales force by recruiting those sacked by other companies (goes for retailers and for us, did a cutback leave a good potential sales person looking for a new position?)
6) Adjust Pricing Tactics - Price cuts attract more consumer support than promotions such as sweepstakes and mail in offers. You may need to offer temporary price promotions, reduce thresholds for quantity discounts, extend credit to long-standing customers, and price smaller pack sizes more aggressively. (Shorten the Buying Cycle)
7) Stress Market Share - In all but a few technology categories where growth prospects are strong, companies are in a battle for market share and, in some cases, survival. Knowing your cost structure can ensure that any cuts or consolidation will save the most money with minimum customer impact. (Share of Mind and Share of Voice)
8) Emphasize Core Values - Although most companies are making employees redundant, chief executives can cement the loyalty of those who remain by assuring employees that the company has survived difficult times before, maintaining quality rather than cutting corners, and servicing existing customers rather than trying to be all things to all people. (Personal Mission Statement)
To read the complete article from Harvard Business School
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