Marketing in a challenging economic climate

Recession. Stagnation. Economic slowdown. Depression. Whatever you call it, the financial situation has changed – and what you did two years ago might not work today. Here are some tips on marketing in the current financial climate.

Recession. There, we said it. No one really likes to use the ‘R’ word, but the reality is our economy has changed – and it’s affecting how marketing and communications professionals go about their work. What was successful two years ago isn’t necessarily going to work today. Here are some things to consider:

Maintain marketing
There’s no question that there’s pressure all round to cut budgets, but now is not the time to cut back dramatically on marketing efforts. It’s vital to remain visible. Research has found that brands that continue to invest in marketing during bad times, when competitors are cutting back, can increase market share at lower cost than in good times. Marketing needs to be seen as an investment, not an expense.

Understand your customers
Knowing your clients is key at any time, but particularly so when the market is contracting. Find out how the economic climate is affecting your customers – and find out how they are redefining value.

Adapt your strategy
Thoroughly examine your strategy to see how you could do things more effectively. This will require a certain amount of corporate soul searching and the courage to axe projects that simply aren’t having the desired effect. Don’t try to spread your efforts too thinly.

Develop authentic messaging
In times of economic downturn, gimmicks are out (if they were ever in) and clean, professional ‘what you see is what you get’ marketing is now the order of the day. Ask yourself, if an outsider evaluated our marketing materials would she think our company comes across as genuine and trustworthy?

Offer extra value
There’s no doubt that customers look for great deals, but ultimately they want solid value. Think about how you could attract and maintain customers by offering additional value without adding a lot of expense. This might involve providing valuable updates and tips, hosting a relevant online forum or offering improved after-sales service. Also, try to make your services more tangible, so they deliver a specific outcome for a specific price.

Shop around
When it comes to working with suppliers, it pays to reassess where you’re getting the best value for money. This doesn’t necessarily mean the cheapest offer. Quality, flexibility, customer service and understanding of your business are all key.

Consider other approaches
If you’ve decided to cut back on advertising, how are you going to continue to engage your customers and build your brand? Now might be the time to focus more on cost-effective targeted direct marketing and social media marketing, as well as PR.

Get connected with social media marketing
LinkedIn. Facebook. Twitter. Digg. Plaxo. The list is endless. If managed correctly, social media can offer you great insight into your customers, in essence providing you with low-cost focus groups – this applies to both business-to-consumer (B2C) and business-to-business (B2B) companies.

But you need to get it right. Develop a strategy for social media marketing and be clear about who is responsible for implementing it. Only participate in activities or websites that are truly relevant to your product or service – and participate honestly and consistently.

While social media can help create awareness about your company and support the sales process it is not exactly known for closing sales. In the near future, watch out for Customer Relationship Management (CRM) applications that are embedded with social media – these have the potential to be very powerful.

Support the sales process
If there was ever a time for your marketing and sales departments to work closely together, then it’s now. Does your sales proposition need to be rethought? Are the benefits of working with your company clear? Do your marketing materials contain a clear call to action? Answer these questions, and make the improvements needed.

Go forth and market well!