Marketing in a Recession
January 21st, 2008 by Bob Bly
The business editor of our local daily newspaper e-mailed me about a story on marketing during a recession.
Economists are divided as to whether we are officially in a recession, but most agree the economy is in a troubled state, to put it mildly.
My advice was that, during a recession, companies should be more flexible and accommodating in matters of price, terms, delivery, service, and sales.
For instance, a printer of specialty films might have a minimum order quantity of 1,000 sheets.
If during a recession, customers complain that they don’t need that many, they should consider waiving that minimum order or at least reducing the minimum order quantity.
That was MY tip.
My question is: what do YOU do in your business — in terms of selling, marketing, pricing, and customer service — to survive and thrive during economic downturns?
This entry was posted on Monday, January 21st, 2008 at 2:11 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
January 21st, 2008 at 2:54 pm
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January 22nd, 2008 at 11:18 am
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January 23rd, 2008 at 2:08 pm
In harder times marketing budgets need to be scrutinized. Every single dollar spent needs to be held accountable. If you can’t justify either a short or a long-term return, then you simply shouldn’t make that marketing investment. So, in some ways, tough economic times bode better for direct marketers than they do for branding specialists or other communications professionals.
With that said, even as a direct marketer, I’d prefer smooth, even economic times…
January 23rd, 2008 at 6:41 pm
Bob, I think the worst thing to do would be drop prices too far and try to work twice as hard to make up the difference. The strategy must be to survive as well as possible – to keep an eye on costs, maintain standards, and just plain slog it out.
Whatever strategy a business adopts to survive in a recession, I think it’s a good idea to remember that the whole grim process can bring rewards in the long run.
To give a specific example, I reckon 2008 is going to bring a big clearout of the long tail of web-based services providers that have sprung up over the past five years or so. In a year’s time there may be fewer copywriters, coders and consultants. But the ones that survive – and I’m pretty optimistic I’ll be one of them – should be pretty well battle-hardened!
January 27th, 2008 at 11:28 pm
I side with Peter Bowerman on this one. He speaks to this point in his book, The Well-Fed Writer: Back for Seconds. He tells the story about starting his career as a FLCW during an economic downturn. It’s all in the mind. If anything, companies will have to market themselves more to gain the dollars of a discriminating consumer. There might be some layoffs and downsizing, which will create more opportunities for freelancers.
It’s never okay to give away your talents for near free, so I proceed with caution when I determine my fees. It’s alright to work within a clients budget. Thus, maximize CRM (Client Relationship Management) best practices and give your all to justify the cost. Remember, there’re some key industries doing better than ever, like the oil industry. Also, the last time I was in Wal-Mart it was packed with people forking over their paychecks. Yes, maybe the products being bought were made in China—But that brings up another point. The U.S dollar has decreased in value but the Euro hasn’t- Why not target international clients? As the saying goes, get rich in a niche.
Bob, the show must go on. I too, like Bill am optimistic I will survive whatever the economic gods have in store.
January 31st, 2008 at 4:59 am
It is funny how during a recession, things like the creative industries are first to be ‘put to the sword’ by firms. Being positive during these times is a challenge in itself, but there are definitely opportunities to betaken advantage of.
Whilst competitors are adopting the same approach of tightening their marketing budgets, it is a great chance to really employ a focused marketing campaign. Account for every penny – yes! But be more pro-active and increase your marketing and PR output, Chances are that anything you do will be a damn sight more than our competitors!
At the same time the creative industries should definitely think about being more flexible. Looking at things like licensing and royalty payments, based on the success of the work. SO, get paid less in the beginning but have a contract that gets you paid more if what you have done has been successful Difficult to gauge, but it is do-able!
January 31st, 2008 at 1:00 pm
As the owner of a small business, I don’t like to see difficult economic times, but then again, I do not allow them to control my business.
I am a marketing coach for self-employed professionals, and I invoice them on a monthly basis. My informal policy is to let their payments fall behind the usual net 30, if times are tough. However, this is a very unusual circumstance. One of my tenets is that one uses slow economic times to take a larger share of the pie, securing cash flow and outmaneuvering the competition as they hunker down to wait out the recession. This has proven successful for both my business and my clients’ as well.
Also, seemingly bad economic times is good for my business. They tend to motivate some of prospects who realize that the climate may damage them. Subsequently, they hire me to ensure that this isn’t the result.
On January 1, I raised my fees as did several of my clients — one to the tune of 25%, making her one of the highest paid people in her field. No one has lost a client, and most are enjoying more clients than at the same time last year.
No recession are not good, and they certainly are not welcomed. However, they come and go, and successful strategies can be employed before, during, and after.
February 2nd, 2008 at 5:15 pm
I think that times of recession can provide opportunities for the smart businessperson. Studies show that, since the 1920s, the biggest sales have been rung up by the firms that advertise the most. What’s more, after the recession is over, the companies that had continued to advertise were well ahead of competitors who had cut back, in terms of staying in front of their customers.
I have even gone so far as to launch my new biz just one week ago. We focus on helping the small business owner cut through the marketing clutter and implement high-value, low-cost marketing strategies to drive sales and customer response. I agree that the businesses with the best ideas will continue to prosper.
February 4th, 2008 at 5:59 pm
As a business coach, I agree: the biggest mistake marketing mistake you can make right now is to lower your prices and minimums. This kind of thinking will just push you out of business faster.
Instead, focus on your niche. Make a big marketing push this year, by reaching out to those ideal customers who you can get the best results for.
Try different ways to get their attention, don’t just repeat the same old advertising stuff.
Ask for referrals from your current / happy customers. Upsell them on additional products / services. And, make sure you deliver solid value, and maintain great customer relationships.
In this way, you’ll be among the strong who not only survive, but thrive.
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