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Marketing
Surviving the Economic Downturn
It is true, we are now being faced with difficult economic
times. This means it's even harder to get the attention of your
consumer.
This week alone there were three advertising companies within
my area that laid off workers. Is it because a major client
pulled their marketing budget? Perhaps clients were not getting
the results they desired. Fact is it's difficult in today's
economy to come out ahead.
Whether you are an agency working for a major client or a small
business trying to survive these difficult times today there
has never been a more crucial time to know your consumer.
In an economic downturn you will see changes in three major
areas. They include:
* Budget Changes
* Consumer Behavior
* Market Changes
How will you respond to budget
changes?
When it comes to budget changes companies
typically pull their advertising and marketing budget. Truth is
by doing this and reducing communication you are only affecting
short term sales, which in return negatively affects profit.
Are you sure this is the course of action that you want to
take? While this may give short-term relief you will risk
losing market share once the economy begins to stabilize and
recovery begins. Consider learning to be more cost efficient
rather than reducing budgets, in the long run it will save you
money.
How will consumer behavior change?
We all
know that consumer behavior changes during a recession and in
return this affects your bottom line. Your audience will spend
less and delay major purchases and even trade down to cheaper
alternatives. However, not all consumers stop spending. They
will in fact alter their habits to better fit their financial
situations, but they will never stop spending. They will lean
more into cheaper brands and alternatives for the duration of
the slow economic times, but if you maintain brand loyalty they
will aspire to regain the ability to purchase the stronger
brands in the future.
They will continue to listen and watch for your communication
to them. Your communication gears them to justify and stimulate
a purchase. If you can develop a lower cost solution, this may
just be the time to do so to help maintain that relationship
through these difficult times. This will keep them loyal and
help to cultivate a stronger relationship in the future.
The majority of larger brands continue to advertise during a
recision and continue to see strong sales and revenue. Many of
them do not do price cutting, but will develop alternatives
that fit more in line with the consumers budget. Consumers are
looking for loyalty not a one-night stand. Will you create a
solution for them during this difficult time?
How to find market opportunity during this
time?
It's true our market changes. We come head to
head with price wars, stronger competition and less money in
the market. There are however opportunities as well. Consider
that media revenue deflates during a recessions which means
this may be the time to make your product or service known
without the high media expenditure. Your competitors will be
cutting their budget spend therefore reducing activity, perhaps
it's time to punch yours up and gain a larger market share. The
price may just be right.
by Laura Lake -
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Source: http://www.thefragrantoil.org
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