by Joseph A. Defetti

Created on: July 22, 2009   Last Updated: July 25, 2009

It's the Economy, Again!

Companies are dumping workers and cutting expenses just to stay in business so they're not buying your products. Government is spending billions but you're not seeing any of it. So what can an honest, hard-working small to mid-size manufacturer like you do to survive these tough times?

The Experts Have the Usual Answers

Authoritative studies of recessions from the 1970s through 2003 affirm that companies that increase their advertising during economic downturns gain market share on the cheap. They look like leaders. They reassure their customers, and they get prospects to take notice in a suddenly less crowded field.

It's easy for ad agencies and publishers to advise you to boost advertising. But it's hard for you to justify spending more when you are faced with cutting back salaries or have to lay off workers who are like family members.

The Danger of Doing Nothing

In a market down 30% (not so uncommon lately), a company with 40% market share needs to boost its piece of the pie to nearly 60% just to keep even on sales.

If you try to weather this storm without a solid marketing presence your prospects will forget about you and your aggressive competitors will go after your customers.

No Doubt About the Data, Just the Dates

What has so many worried, however, is that this Great Recession is different from those we've survived during the past generation. What about the Great Depression? Was being more aggressive the answer?

Post was the market leader during the 1920s in the relatively new industry of packaged cereal. When the Great Depression hit, Post pulled back on advertising and stalled new product introductions while the upstart Kellogg's burst forth by increasing its advertising and rolling out Rice Krispies. Kellogg's quickly became the market leader and has never looked back.

Seven Strategies for Success over Survival

1. Keep close to your customers. Use email and email newsletters, direct mail, phone calls, personal notes offer value-added for re-orders or trying new products. Provide solutions that help them get their customers through the recession. And keep an eye out for customers that may not survive so you don't get stuck.

2. Be on the shelf. Where do buyers in your industry look when they are ready to buy? If they need to find a new supplier or just get three bids, they look in their files of known sources. Then they head for the Internet. They use comprehensive online directories, broad-based (e.g. ThomasNet, GlobalSpec, Kellysearch,

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