Marketing through an economic downturn — how to rise above
the rest...

You are a business owner and perhaps facing an uncertain future in the face of increasing costs, fierce competition and sales that are ever harder to come by. You are bound to start looking at all of those non essential costs that can be considered as additional spending in order to keep costs to your business low. All too often in this situation, business owners wrongly consider their marketing budget as such a cost and significantly reduce or cut their marketing budget altogether in an effort to save money.

True, short term cutbacks in marketing activity will give an immediate cashflow boost but long term, ceasing marketing for any length of time and particularly during a recession has many more harmful long term effects, all of which will mean you will get left behind.

The smart money however is with marketing and providing value to the client through the brand, creating a desire for the product and making your product stand out in a crowd. Growth companies market consistently and creatively to their targets, constantly reinforcing brands and brand values and creating increased awareness and customer experience, leading to increased sales and ensuring that your business is able to survive the current economic downturn.

There are many tactics that businesses can employ to improve return on investment in their marketing, improving the value that you get from your money and if you get the customer experience with you right and reflecting your values correctly, then you may even have a case for less spend in certain areas as recommendations and referrals roll in.

Here are some hints and tips when reviewing your marketing budget in unfavourable economic conditions.

1. Marketing - Been Seen, Be Heard

If you are not out there, then nobody will see you and nobody will know that you are there. Marketing is based around communication and if you are not marketing then you are not communicating. A marketing budget, however small, will provide you with a competitive advantage, and could allow you good deal more exposure for less money. You can communicate cost effectively with exiting and potential customers alike with new digital techniques that allow a certain flexibility. Awareness is key in highly competitive markets - whatever you do, you have a target market and they want to see you!

2. Plan, implement, Measure

Planning is crucial to the marketing process and equally importantly, you must constantly monitor your results and use the most measurable forms of marketing techniques that are available. Appointing an agency on a retained basis will give clear direction and focus for marketing and should recommend solutions that will achieve maximum return on investment. This should be constantly reviewed and tweaked to establish optimum return on investment. Don't cut corners to save money - ask yourself one question before you cut your spend or compromise - would you take £20,000 from a £2,000 spend or £60,000 from a £6,000 campaign?

3. Target Your Existing Customers

Your existing clients will provide the bread and butter that you rely on to pay the wages at the end of the month. They are your most immediate source of income and are easily obtainable. Seek to strengthen relationships with gentle but persistent communications with offers, updates, upsells. Engage with your existing customers and market to them in order to reinforce the brand in their eyes. Your sales force will be able to confidently present your offering with professional marketing that enables them to be identified from the competition.

4. Be Creative

Don't be a shrinking violet - all the best brands are simple but effective - they are instantly recognizable and synonymous with a whole host of feelings and opinions in the consumer's eyes. Think about your target markets and media choice carefully - what are their interests, problems, what coverage fo you want to receive and what are your key messages, - then ask what they need in response to their requirement. Can you introduce humour or creative photography to catch their eye? Don't be afraid of spending a little more on good creative and unusual production techniques to get the right impact - a well executed direct marketing piece can be highly effective, particularly if effectively followed up with further contact.

As a business owner, you should rightly consider cutting costs to improve profits in the face of the many challenges of an economic downturn but is should always be considered a process that has a beginning but should never have an end.

Article written by Karen Page

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