Do you think it is getting harder to market your organization?  You are not alone.  If you read the headlines you know that consumer spending is down.  And, when spending is down, the marketing budget is the first to be affected.

You should be prepared and modify your marketing strategy to stay both profitable and consumer-responsive.  Certain industries bear the brunt harder than others, such as retail, consumer goods, travel & tourism, and financial services.  People have less income to spend, so they are more frugal when buying goods and services they need.  They also scrutinize more closely the things they don't need.

Marketers should pay close attention to economy-induced changes in consumer behavior.   For some it could be gloom for others an opportunity.  For example, the Wall Street Journal reports that only 16% of consumers have firmed-up 2008 summer vacation plans vs. 42% who'd done so by this time a year ago. With the plummeting dollar putting foreign travel out of reach for many, and gas prices making long car trips a thing of the past, close-to-home vacation alternatives such as movie theaters, amusement parks, and sports venues should take advantage of this opportunity.

There are no rules of thumb for advertising in a recession-except one: market smarter.  Marketers need to do everything they can to get the highest return on their marketing dollars.  That means it is time to have a contingency strategy where you can shift your spending from traditional tactics such as radio or print advertising to direct or online tactics with proven ROI.

Fortunately, we have an arsenal of tactics to choose from.  I call this the "Recession Survival Guide" for Marketing.

Survival Guide

1. Don't Kill Your Budget

Now is the time to be brave.  If feasible, increase your marketing spend to gain a larger voice in your market as your competitors cut back.  This is your chance to gain true competitive advantage with a share of voice you've only been able to dream about.  Don't forget that top-of-mind awareness is an asset of the company that will devalue faster than you can say ROI. In truth, awareness can decline as fast as 50 percent a month when you go silent, and the cost of buying back that awareness will be horrendous.

Paid advertising can often be purchased at a much lower price during a recession. Media are feeling the pinch as well. Very often, they will cut you a great deal on space. Very often, you can get more premium placement advertising during an economic downturn than at any other time.

Controlling cost does not mean cutting cost. It means being smarter with the budget you do have, and wringing greater value from every dollar you invest in your marketing program. Controlling costs allows you to invest your money where it drives the greatest revenue. Do not fall into the habit of doing something "because you always have."

Marketers are investing more online such as search engine optimization, paid search, affiliate marketing, email marketing and viral marketing because it's less expensive and easier to measure ROI than traditional tactics.  Also, because it works.

2. Dribble instead of the Big Bang

Traditional advertising has always been the first to go, and depending on your media mix, that may make sense now.   Any good financial advisor would tell you never to put all your money into just one stock.  Instead, it is better to diversify.  It's the same thing with a marketing budget.  Put your money where you will get the best return.  If that means letting go of one big category so you can take advantage of more targeted smaller ones, so be it.

3. Stay Focused

Concentrate spending where it can have the greatest impact.   That includes: analyzing your customer base, cross-selling and up-selling, reevaluating your product mix, targeting your messaging, letting your sales objectives drive the spending decisions, and using inexpensive new interactive tactics.  Make sure to check out our Recession Marketing Template to help you get started!

4. Keep it Light

A little humor will be most appreciated by your otherwise stressed-out consumers.  Everyone loves a good laugh.  Humor in advertising stands out. It engages completely.  And, as long as the laughter it generates is relevant to your intended audience and messaging strategy, humor has undeniable power to get people to remember you.  People will pay more attention to a funny commercial than a factual or serious one, opening themselves up to be influenced.  Here's some links to funny and memorable TV commercials:

American Express, Ellen and Animals http://www.youtube.com/watch?v=h5LR-IZbbc0

FedEx, Carrier Pigeons
http://www.spike.com/video/carrier-pigeons/2938219/collection/25701/minisite/superbowl

(My favorite)Mac Commercials http://www.spike.com/video/security-get-mac/2820144

5. Avoid the Middle

This is a bad time to be Delta Airlines and a better time to be Southwest.  Delta is stuck in the middle without a competitive advantage on price, value or service.  Southwest on the other hand offers both value and service that keep regular fliers coming back for more.  In the last year, I have flown five different airlines.  Southwest was the only one that didn't lose my luggage (United & Northwest), didn't give us the cold shoulder (American) and didn't make us late (United, Northwest, American, and US Air).  Matter of fact, on my last Southwest flight got in 35 minutes early and the flight attendant did a 15 minute stand-up comedy routine that had the people on the plane crying they were laughing so hard.  That's definitely avoiding the middle!

So, set yourself apart from the competition by developing your own Value Proposition.  Prospective customers MUST have a good reason to do business with you rather than your competition. Your Value Proposition answers the question "Why should I buy from you?"  It could be your superior customer service, your lifetime refund policy, best prices, outstanding quality of your products, or the friendliness of your staff.

6. Hedge your bets

Measure everything!  Now is the time to have systems in place to give you instant results to your campaigns.  Looking at data daily helps determine where to spend money more wisely and gives you the chance to act on something before the problem becomes too big and starts showing up on the bottom line.

The problem with many marketing efforts is the inability of management to ascertain what really works, and why. That's why smart marketers always measure outcomes so they know exactly where to invest for the greatest return.  The more you test and measure, the more relevant data you'll get.

7. Get creative

Effective marketing does not always have to be complicated or expensive.  So, get creative and look for ways to market your organization without spending a fortune.  Some effective methods to consider:

8. Embrace your database

Embrace your database.  Your current database probably houses former customers and prospects, as well as current customers and suppliers. Now's the time to go after them. Reactivate dormant accounts and leads with new products, promotions and services.  Also, contact current customers for referrals.

The cost of acquiring new customers in a downturn is high.  So, keeping them coming back for more is key.  Try to exceed their expectations by offering incentives and service that your competitors are not.

9. Be flexible

When other businesses are pulling back, it's time for your company to move in and fill the void.  Those that will succeed will have well-recognized brands, differentiated products, targeted communications, and good support and service.  Avoid getting swept up in the FUD factor: fear, uncertainty, and doubt.  A lot of what happens during a recession is emotion. Counter emotion with factual data, such as the average recession only last 11 months.

10. Manage your message

When a downturn occurs, consumers are less likely to spend on items that aren't necessary.  That means you need to rethink how you are communicating your message to your customers.  According to studies, a successful recession marketing message will:

• Emphasize value and cost savings
• Demonstrate exactly what customers can expect for their investment
• Highlight free trials, special discounts, and loyalty offers
• Build credibility by displaying customer testimonials

What do you think?

Is your company feeling the effects of a recession?  Or, are you in a recession proof industry?  Leave feedback or discuss now...

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creative marketing  manage your message  marketing survival guide  recession marketing