Recession Marketing Part 1: Beating the RecessionJonathan Daniel Cox
February 11, 2008
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An unspoken air of tension hangs over the populace. Whispers spread back and forth…"The market's down, hard times are coming."
Sound familiar? There's a lot of negativity about the state of the
market right now, but let's look past the gossip and examine the facts.
All markets fluctuate to varying degrees. Economic cycles come and
go, businesses rise and fall. But look at companies like McDonalds,
Johnson & Johnson and Colgate that have survived and even grown in
periods of economic recession. What's their secret?
If you've ever been busy and on a budget, you've probably eaten at
McDonald's. What makes them worthy of the title of "largest fast-food
chain in the world?"
Ba-da-ba-ba-ba, I'm luvin' it!
Ever had that stuck in your head, followed by a slight tinge of
resentment because you're now craving a burger, fries, and a Coke?
Super-size it!
And after that, don't forget to brush your teeth. How do you protect your teeth for 12 hours after brushing? Colgate!
If you're a parent, you've probably used Johnson's Baby Powder at
some point; it's almost a conditioned response. Why? Because we hear
that warm, maternal voice articulating how smooth and clean it leaves
our skin feeling. We see the happy, giggling baby laying in the
sunlight, clutching her parent's finger after a changing.
All of these companies have one thing in common, and this is their secret:
They all understand the value of marketing. Each of these companies
continued to market and even expanded their marketing during past
recessions.
Marketing during a recession
A series of six studies conducted by the research firm of Meldrum &
Fewsmith showed conclusively that advertising aggressively during
recessions not only increases sales but increases profits. This fact
has held true for all post-World War II recessions studied by American
Business Press starting in 1949.
With that being said, marketing can be a costly enterprise, and
there's never been more information to absorb or avenues to choose
from. How do you make the right choice?
What are my options?
A combination of marketing techniques is the most effective strategy.
Here are the four major categories of marketing media you can focus on:
1. Internet
2. Television
3. Radio
4. Print (newspaper, magazines, journals, etc)
Be aware that each category is generally more effective within
different age groups. Internet marketing has the highest impact on the
18-35 age group. Television is more effective with the age 35-50 crowd.
Radio reaches a fairly broad age range, but doesn't always grab
attention as effectively as the other venues. Print media marketing is
generally more effective for an audience of ages 35-75.
So how do you get the most out of your marketing dollar?
• Tailor your marketing mix based on your client demographic
• Get better results and save money with traditional advertising (by
cutting excess spending and integrating your website with traditional
marketing)
• Shift spending towards more traceable marketing venues (internet, track, capture info/etc)
Here are a few tips for recession marketing that will save you money and keep your company at the head of the pack:
Know Your Clients
Consider your own client base. What are the average ages for the top
20% of your clients? How many of your clients are over 50? How many of
them are over 35? This will help you narrow down where your clients go
for information. Identifying the strategic ground is crucial to winning
market share.
No matter what form of advertising you use, everyone's favorite
radio station, TV station or blog is W.I.I.F.E, "What's In It For Me?"
That's what everyone's tuned in to. Make sure your ads answer that
question in 10 seconds or less.
Run a Lean, Focused Campaign
Look for ways to cut excess spending while still maintaining
visibility. Focus on results by driving marketing and traffic to your
website. Then you can convert those visitors into leads and a database
of contact information.
Waste not, want not. A ¾ page ad in the yellow pages can be just as
effective as a full page. Rather than running a full page sales letter
in a magazine or tabloid, offer a free report that people can print out
online once they visit your web site.
Negotiate with your stations to buy filler inventory. Often radio
stations will have 10 to 15 seconds where they have to push filler in
order to start a show on time. Those 10 to 15 seconds could easily be
your ad at a significant discount. The station gets the extra dollars
they need during a recession and you get the extra exposure.
Invest in a Strong Web Presence
Think of ways to drive people to your website. Consider using an
easy-to remember URL with your promotions, like "KFAQLovesPizza.com."
Make sure your URL is easy to spell and contains no symbols. This
strategy makes it very simple to track your promotions.
In addition to your phone number and URL in your advertisements,
offer a free report, a free newsletter, coupons, or some other free
information of value to your target market. This is always appealing to
customers, even more so in difficult times.
One crucial aspect of your website marketing mix is capturing your
visitor's information. A simple contact form tastefully placed on your
front page with places for name, e-mail address, and phone number will
dramatically increase the amount of leads you receive.
Join me next time for my article on how to beat the recession and grow your business through the first of the four categories, Internet Marketing.
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