Are we in a recession? Maybe, maybe not. However, let's assume that the US economy will be in a recession and that as marketers we need to work within that reality. Here are some tips for what you should do.
1. Spend smarter
You may have to spend less on marketing. Not because marketing should be cut first or most (it most certainly should not), but because your company may cut budgets across the board. In fact, by showing how you intend to spend smarter, you will make it easier to fight for your resources (see below).
By "spend smarter" I mean create a clear-cut justification for the investment. While you won't always be able to measure the ROI (this is marketing, after all), you can have your people create a compelling business case for each investment. Then, when it comes time to justify the investment, you will have established sound business reasoning behind it. And that's what the CEO and CFO need to see in a recession.
2. Double-down on your current customers
Sure it's more fun to get new customers, but it's more practical in a downturn to provide more value (and get more in return) from your current customers.
When customers make decisions in a downturn, they're more likely to go with a more trusted source. If they're more likely to go with you, then you want to make it easier and more obvious to them to go with you. Market to them. Enable your sales teams to be more effective with them. Ask current customers what they need from you.
Care for them, and they will be even more likely to stick with you if the going gets tough.
3. Outsmart your competitors
You have an opportunity in a downturn to win market share from your competitors.
If you pay close attention to what's happening in your target markets and how customers are reacting to a recession, you can act early and often with changes in product (if you can change it quickly), price, and positioning (especially as perceived needs change).
For example, in the last technology downturn, software companies became very creative in their pricing schema, creating many variations of software as a service (SaaS) that enabled them to sell when their competitors were stuck in an old paradigm.
4. Invest in growing market segments
In every downturn there are market segments that grow faster than others. It's your job as a marketer to help your company see and understand these market segments, and determine whether you can quickly win business in those fast-growing market segments.
These may be segments you're already selling to, but not particularly focused on; or they may represent new segments-and new opportunities for your company. At the same time, you will want to reduce your investments in the segments that will get hit the most in the downturn.
5. Fight for your resources
I've argued that it's marketing's responsibility to drive strategic issues (see CMOs as True Leaders ). In a recession, this becomes even more important.
Knee-jerk reactions of companies where the CMO is not deeply involved in strategy are often to cut budgets and people in marketing disproportionately. This results in marketing's playing a less important role, and an extremely inefficient pendulum-swing of dollars and people that result in being caught flat-footed and losing out to competitors very shortly after the cuts are made.
It's marketing's responsibility to fight for its resources, and doing the four items above will help you win that battle.
Written By Glenn Gow founded marketing strategy and implementation consulting services firm Crimson
The Twinkie Awards is a small business awards show where a small business will submit their BEST work in Sales and Marketing.
Even long after I tell exactly what The Twinkie Awards is, people seemed to stumped by the mere word "Twinkie". This is the most asked question when I make my sells pitch. Okay, a "Twinkie" is a "No Hassle Sale" it's something you do everyday that is $20 or more to keep your business going. For me, it was 100 color copies for $20, that made over $1000 in one week. For Andrew Morrison it was a "21 questions" Book that made over $13,000 dollars, for others, well you be the judge of that. A "Twinkie" is a quick snack in between your bigger deals.
Let's talk about your "Twinkie" How are you getting your "Twinkie" on? Everyone has "twinkie", what are you waiting for, tell me all about your "Twinkie".
Tell me.
TheProducer
Dear friends and associates,
Over the past three months Lil Jimmy (Phil Williams) has been involved
with 27 other contestants in "The Twinkie Awards" which is an up an
coming award show about exposing enterpreneurs who are developing
business ideas on a shoe-string budget (nicknamed the twinkie), you
can check them out at http://www.thetwinkieawards.com. The video that
we will be sharing is our first big challenge where Lil Jimmy had to
present to the judges (for the first time) our business strategy in 10
minutes or less. In this clip, what you don't see is very intimidating.
Let me set the stage: It is a small board room and bright lights are
shining on you and there are seven people sitting around the table
that you have never met, included are people from Turner Broadcasting,
Cartoon Network, major advertising agencies, and several successful
enterpreneurs who are judging the contestants. You do not have time
to warm up you walk in and boom you are on!! Not a problem when you
are prepared, but very intimidating to young enterpreneurs (great
experience, though).
Out of 27 contestants we were about 15th to present and it was late on
Monday night when we finally presented. Several of the contestants
came out of this challenge in tears, and very upset as the judges were
very tough and really picked apart their business strategies. hil
Williams went in and was the ONLY contestant (that night) that all the
judges "clapped" when he was finished, and several of the judges asked
us to stay afterwards and they took a long look at our product ideas
and strategies. We received strong compliments for our marketing
strategies and our branding (business cards, identity package, flyers,
press releases, truck wrap, website, etc.).
Check out the Lil Jimmy presentation at http://www.youtube.com/watch?v=ugXBEQoFirQ
The one judge who was chewing up contestants said to Phil and I and to
the other judges "he could find nothing wrong with our strategy, our
marketing plan, and our ability to articulate our strategies."
Obviously Phil and I were blown away by such an affirmation and vote
of confidence.
Phil did a marvelous job and I wanted to share with everyone the
latest clip from this award show. I hope it encourages you to get
out and share your business/ministry ideas and strategies.
We would also like to thank Letitia Owens the President/Founder of The
Twinkie Awards for encouraging us to get involved with the award show,
it continues to be everything she said it would be!!
Blessings,
Joe Sheffield
CEO
Lil Jimmy Enterprizes, LLC
www.liljimmy.org
joe@liljimmy.org
shef4900@bellsouth.net