Slow economy, unstable market, high gas prices, economic bailout plans - what all does this mean to us - the business owners, purchasers and marketers responsible for keeping the business afloat during these uncertain times? First response to times like these is to cut the marketing and advertising budget.
Sometimes budget cuts are justified, but in most cases they're a big mistake, here's why:
Marketing Equals Revenue.
Research has proven time and time again that a business' marketing budget is directly proportional to the profitability of a company. Cutting resources to your marketing and advertising campaigns will simply not benefit the business. Period.
Budget cuts and a reduction of advertising allow the smart and creative businesses to recapture a bigger share of their market while their competitors are trying to save money. Essentially, with few advertisers present to promote their products and services, the less competition there will be fighting for business. From the customer's viewpoint, this is perceived as fewer choices to purchase the same product or service. This makes it all that more important to keep your campaigns going through times like these! With few competing advertisers, it only makes sense that those who are still promoting and staying in front of their customers will see an increase in their ROI.
Here's a couple of ideas to help you boost your business' market share during this economic slump to help guarantee you come out on top with things do finally turn around.
- Networking - Join professional organizations in your community, particularly those that pertain to your industry. Become active in their discussions and events. List your name in their member directory. Ads placed in an industry specific membership directory are more likely to reach an audience who are more apt to purchase your product or service.
- Train Sales Staff - During slow times, the strength of your sales staff becomes even more important. Include training on products, services and sales pointers (see our previous article on how to close a deal). If times are slow, it's important that your sales team be at the top of their game in order to make the most of every opportunity.
- Attend Trade Shows - Take these opportunities to learn first-hand about current industry trends, new products and technologies. Many companies cut back trade show attendance during slow times, but this isn't good business practice. In a slow economy, it's important that you know what resources are available to help differentiate you from your competition.
- Utilize Co-op Advertising - Many corporations will help subsidize your advertising project if you feature their product or mention that you're one of their authorized dealers. This is a highly effective way to stretch your ad budget, allowing you to launch a broader campaign with the same amount of money.
- Shift Your Marketing Dollars - It's important to know where your money comes from. If you find that 80% of your revenue comes from 20% of your customer base, this 20% can more easily be encouraged to purchase your products and services again than the remaining 80% who may not be inclined to use you as often. Focus your advertising efforts on the top-buying 20%. The best way to encourage those regular customers to purchase again is by steadily making contact with them through outlets such as direct mail, email newsletters or even a simple phone call. The more times you're able to connect with your customers the better information you'll be able to get from them regarding their purchasing habits, needs and trends in their industry. This also allows for a more personal relationship between you and you customers, allowing you to convert customers into fans.
- Public Relations - Proper PR is a great way to jump out ahead of your competition and usually costs less per lead than traditional advertising means. Has your company had any major changes, purchased new cutting-edge equipment or developed a new technique of doing a job that may save customers money? Write up a brief press release any time your company does something newsworthy and submit it to your local publications (or even national publications if it's a big enough story). This type of exposure increases your company's credibility in the public eye because the articles that your press release may generate are written by unbiased, third parties.
- Diversify - Think outside the box. Are there any industries or markets you're not exposing yourself to that could use your products and services? New markets can be an untapped gold mine for your business.
- Expand Your Web Presence - Past economic swings have shown us that Internet Advertising tends to be more recession proof than traditional advertising and typically is cheaper than print. Take advantage of industry-related advertising opportunities. If you run a Pay Per Click (PPC) campaign like Google's AdWords, use their geographical features to advertise outside your normal areas of business. Target the areas to which you would like to expand your business.
Simple logic tells us that if a slow economy has others pulling their advertising from the marketplace, that leaves us more opportunity to gain sales by reaching their customer base. Always keep marketing!
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