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(Article first published in Sept '08. It has been modified slightly to suit its publication on our site)
It is fair to say that the global economy is facing some tough times and almost all businesses are taking the prudent approach of cutting costs and staying lean, but where does marketing spend fall in that discussion? It depends how you look at marketing. If you see it as a cost, then frankly you shouldn't be marketing at all (whether during boom or bust times). But if you see marketing as an investment, then times of national or global financial difficulties are actually opportunities for you to grow your business and there are many examples of this happening in recent history.
One of the most famous examples of this was Proctor & Gamble during the "Great Depression" in the US. Despite the worst financial situation in history, they were highly successful and became the number one soap brand with their 'Ivory' soap. More recently, Intel established their world number one computer chip brand status during the recession of the early 1990s and in the same period Dell Computers became the world number one supplier of PCs.
What they all had in common was that when everyone else was putting their marketing spend on hold, these companies actually increased their spend.
This proves a key point of doing business during difficult times: There are people out there buying whatever it is that you sell or provide. So while everyone else is ignoring these customers, if you can get your company noticed, you will be more likely to get their business.
Certainly this takes a lot of guts to do, but providing your business satisfies some key criteria, there is no reason that it can't apply to you:
- Your company should already value the power of good marketing and see it as an investment.
If you see marketing as an investment, it means that you probably track the short-term and long-term success of your marketing programs and campaigns. If this is the case you are less likely to spend money on the wrong activities and so make a bad situation worse.
- You need to be brave enough to increase spend when all around you are closing their wallets and purses.
You need to remember that marketing doesn't always deliver instant results - do you have the fortitude to see it through? Start-Stop marketing will only cost you money rather than making you money, so set your course and stick to it and make savings in other areas of your business where you must.
- Get your message right!
Isn't it funny how, for the first time ever, supermarkets like Tesco are comparing their prices with the 'cheap' stores like ALDI and LIDL. During tough times the people who are buying are looking for bargains. So change your message to match what they are looking for.
- You need to commit the funds to see it through.
Don't even think about spending more money if you can't afford it. Sounds obvious I know, but look at your finances and create a marketing budget that you are comfortable with and then commit to it.
- Have a plan.
You need to spend your budget where it makes sense. The only way to do that is to think very carefully about your objectives and then what will help you achieve them. This will make it pretty obvious where you need to spend your money.
- Don't fall for gimmicks or unfounded promises.
During hard times there are a million and one companies that come out of the woodwork offering all sorts of amazing marketing gimmicks and new ideas. Times like these are not times to experiment. You are already risking increased spend, don't add to that by spending it on a risky idea - that just doubles your risk!
- Are your fallen sales really caused by lower consumer confidence, or just poor marketing?
It's easy to blame 'the market' for your downturn, but being successful in good times doesn't take genius, you're basically selling water to a thirsty man! So could it be that your lack of success says more about your own marketing success than it does about the state of the economy?
Franco De Bonis has worked in the field of sales and marketing promotion since 1990 and was most recently the global marketing manager for a major international technology company before setting up DG Group in January 2007.
DG Group is dedicated to delivering all the marketing solutions any company may require. Whether it's a website or leaflets and brochures, or even some product packaging; DG Group will manage the whole project and even provide guidance along the way.
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