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How to Market Your Company in a Bad Economy
It’s all over the news. Yes, we’ve all heard, right now, the economy is not exactly what we’d all like it to be. While you sit and watch each depressing news story and think about your own companies, it may seem like a good decision to cut back on your marketing budgets. Well, I am here to tell you, it’s not. Now is simply the time to market smarter, better and more efficiently.
In a McGraw-Hill Research study of the 1981-82 economic recession, the company studied 600 companies covering 16 different SIC industries. During that time, companies that marketed aggressively grew steadily during the recession. But the real news happened in the two years following the economic downturn. The companies that cut back on their marketing had markedly stalled growth, while the competitors that didn’t cut back grew by a whopping 256%.
This study is just one of many which consistently indicate that you should not eliminate your marketing budget during these poor economic times. Rather, it’s a time to re-evaluate your strategies and play your cards smart. Below are five simple tips that can help you do just that.
Target your audience. The old joke of this industry is that half of all advertising is a waste, but no body knows which half. When budgets are tight, target audience definition is crucial. You should have a very clearly defined primary and secondary audience. Once you have this clear definition, you can study their buying habits, evaluate their buying patterns and know quite precisely how to reach them. I liken it to duck hunting. If you see a flock of ducks in the air and point your gun hoping to shoot one of them, you may or may not get lucky – and you just may make a lot of unnecessary and unproductive noise. But, if you accurately aim at one and keep your eye keenly focused before you pull that trigger, you will have a much greater chance of achieving your target. Target marketing is exactly the same. Network. Network. Network.
The greatest resource you have is your time. Spending that time in the most productive ways is certainly a consideration when business is tough. Although most people can hardly find enough time to manage all the necessary daily tasks, it is important to carve out some time for selective networking opportunities. It’s great from a budget standpoint, because it usually costs very little and the rewards can be enormous. So, take some time and think about where your best source of leads could be.
Maybe it’s from joining worthy civic organization or attending a business function. And don’t forget your most important potential lead source – your existing customers. Get to know them and follow-up after a sale and don’t be afraid to ask for a referral.
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Track your advertising. I am always surprised how many businesses don’t do this. Or, at least, don’t do it well. Knowing where your leads are coming from is vital when budgets are tight. Put a system in place to ask your customers specifically where they heard of you. Or perhaps consider implementing a direct response campaign. Coding your response vehicles allows you to easily track where leads originated. Doing this for even a limited amount of time will provide you the knowledge on which to base your future ad expenditures.
Use the Internet. This amazing marketing opportunity continues to grow by leaps and bounds. While it may not replace your traditional marketing efforts, it is a great way to enhance your campaigns. Take advantage of all the free opportunities to market that are literally at your fingertips. Blogs as well as a wide array of social networking sites allow you to reach out to your target audience in a personal and frequent way. Marketing your company’s website with links, search engine optimization and key words also provide inexpensive, if not free, opportunities to reach out and expand your customer base. The Internet is growing, and regardless of economic conditions, it’s important to develop a strategy to use it to your best advantage.
Keep spending. I know it’s easy to say, but you’ve got to stay on your customer’s radar screen in order to maintain market share. Dropping off the screen completely may put you in an expensive game of catch up later. The more visible you are, the more confidant your customers and prospects become. The more they are reminded of your company benefits, legitimacy and staying power, the more they'll be inclined to believe you'll be there for them tomorrow. And the more they will buy from you when their purse strings are a bit looser.
So, market smart. Use this time that your competitors are possibly hiding their heads in the sand as an opportunity to increase your exposure, increase your market share and when the economy picks back up, ultimately expand your marketing leverage exponentially. Your progress may come in baby steps while times are tough, but by developing a sound and creative strategy now, that progress should explode when the economy gets back on track.
Comments or questions? Email me - mary@cmsa.
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