Economic apocalypse
Oh dear, it appears that we have gone and got ourselves into a pickle as far as the economy goes. What with short selling and sub prime mortgaging it looks like this economic apocalypse has become a reality, which is a bit of a worry for most of us. Whatever is going to happen next? Last time we were in this much bother as far as our finances went that Hitler chap took control of a country which led to loads of problems. Ok, that was a little sensationalist, but you can never be too sure. One thing we do know about downturns here at is that if you’re not smart with your marketing, the Third Reich could wind up being the least of your worries. Do not despair though, as long as you pay know a few basic rules, you should be able to survive to see daylight again.
First off, do not cut your marketing budget. This might be a big mistake. There is this strong, overwhelming temptation when times are tough to stop or lower spend, however if anything you should be increasing it. A study by PIMS found after studying a number of companies before and after economic downturns, that those who increased their marketing budget during recessions benefited enormously when things got better. Those that maintained or lowered their marketing budget were found to have a lowered sales turnover after the recession. After all it’s not going to be doom and gloom forever, so start thinking about long term marketing rather than keeping your head above water, (we also help with swimming lessons short term).
Secondly, remember what your brand is. It’s vital to focus upon what your brand stands for. If you have a luxury brand that commands a premium price, simply slashing your prices will not have the desired effect. You don’t want to alter your brand image just to get a few pennies, you might end up regretting it later. Think about what your competitive advantage is and let it be your guide as to how you compete.
Thirdly remember who your customers are. Remember to target them in the right way. Remember the messages that you are sending out to them are conveying how they see your brand, they have to be constant, and they have to target them in the right way at the right time. Customers will be looking for brands that look after them, and remain sure footed when times are tough. If you look after them, then even if they do not make a purchase while times are tough, you will gain a large share of mind, and be able to reap the rewards when things start to get better.