by Patricia Hanrahan

Created on: March 28, 2009

MARKETING IN UNCERTAIN TIMES

Don't Back Down in a Faltering Economy

One of the most common errors that small businesses make is to stop marketing when times get tough. Yet, according to Wall Street Journal columnist Kelly Spors, a down economy is the worst time for a small business to cut back on marketing efforts. Stefan Tornquist, research director for Marketing Sherpa, reported the results of a recent survey of small firms: The majority are waiting to see what happens before making changes to their marketing budgets. The second largest group believes that the down market is an opportunity, and the third group is reining in their budget.

Those who are using the down economy as an opportunity are spending their marketing dollars differently. They're taking money out of traditional advertising and direct-marketing campaigns and putting it online. That was a movement that was already taking place, but the economy is accelerating the trend. Email marketing and online social marketing have grown tremendously, and the cost to smaller businesses can be very reasonable if they are willing to do much of the work themselves. Mass email services providers make this easier than ever with templates and dedicated ISPs, and social networking sites like MySpace and FaceBook are easy for businesses to use.

Successful businesses are also examining their marketing messages to make sure that still resonate with their customers. For instance, a "higher quality for a higher price" message might not be as effective in a down economy as a message featuring "long-term value" or "longer product life." Consumers have grown sensitive to value and appreciate a message that emphasizes this quality.

Use a Down Economy to Your Advantage

Smart companies use a downturn to reflect on how they can expand their customer relationships. If you can keep your brand relevant and consistently in front of your target audience, your chances of gaining a top market position actually increase in hard times. Now is the time to review your marketing program. Is your message relevant to your customers? Are you using the best channels to reach them? What else can you do to enhance your customer relationships? Consider testing new messages and tactics to see what works.

Savvy firms understand that economic conditions are cyclical, so when the up turn begins, they have positioned themselves to gain market share. They continue to market (or increase) during slow times. As their competitors cut their budgets and hunker down, those who market effectively are in the very best position to reap the return on their sustained investment. When the smoke of tough times wanes, those who have maintained a consistent presence will be seen and remembered. Consider an uncertain economy your opportunity for increasing your brand recognition.

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