Marketing Tactics in a Recession

Remember the Y2K computer break down? Neither do I. But there always has to be some scare it seems. This time around, it's the RECESSION! A spouky, scary thing that tells everybody to keep their pockets closed and wait it off.

One of the first thing companies cut down is often marketing. I mean, it seems so easy. It's just cost, you don't have to sell anything, close anything down nor lay anyone off. Or what? What affect does cutting down on marketing have? Usually that means less sales, smaller market share, and even less sales so eventually that company is going to be forced into real cost cuts.

Warren Buffet, one of the world's richest men, once revealed his big secret to success in business: "Buy low, sell high!" When everyone is selling you buy. When everyone is buying you sell. If you want to get to the top, you will have to go upstream.

The same goes for marketing. If your competition is cutting back on advertising, increase your advertising. Fill the vacuum they are leaving behind with your message. It will be easier to grab the attention of potential customers when the competition is not there and it will even be cheaper too if the media gets a bit more desperate selling the ad space.

If recession is really hitting you hard, you're going to need marketing more than ever. You may have to cut down on expencive mass marketing, but mass marketing is dead anyway, so who cares. So what can you do instead?

1. Internet marketing
Increase your effort in Internet marketing, SMM (social media marketing) and blog marketing. The Internet has some very effective alternatives where you can get to your primary target group on a very low budget. Engage in the conversation. Just be targeted.

2. Guerilla marketing
Use guerilla marketing tactics to get to the customers, sponsor events and make headlines by doing something out of the ordinary for your customer.

3. CSR (Corporate Social Responsibility)
Increase your CSR efforts. Don't cut CSR out though it may be tempting. The "correct reason" for not cutting CSR out is because people are going to be needing it more than before. But the other reason is that if people are low on money, they are going to appreciate all social responsibility you and your company take on, much more than if nothing worries them. If they can imagine they might need a helping hand, they will respect the giving hand so much more.

4. Word-of-mouth
Remember that it's much cheaper to keep your present customers than getting new ones. The next thing that is cut down after marketing is the service level. All those little extras are removed. Portions shrink. Bags and parking start to cost. Well think about this: If your competitors think this way, they become very easy to beat in the competition. If everyone else thinks this way, including your customers, they are going to really value your free parking, your little extras and those small pleasures they are denying themselves. You are sending them the message that you're not going anywhere. You are staying on the market and continuing to provide excellent service. So they are all coming to you and if you're really good enough, they will bring all their friends with them.

Most see a recession as a depression. Others see the opportunities it brings. It will never be as easy to gain market share as in a recession. Carpe diem!

Always look at the bright side of life
Hjörtur

UPDATE: I've released an ebook on this subject called "The Marketer's Magic Chest - Marketing tips, tricks and tools to unlock the chains of recession".

Comments

[Glenn Gow]

Hjortur,

The nice thing about blogging is that we can debate. I see your point of view, but view it differently.

Online marketing is only one part of the marketing mix. I’m not convinced a company should increase its investment in that area. It will all depend on how it performs relative to other parts of the marketing mix.

And, as much as I like CSR, I don’t see that as an easily defensible investment in a downturn.

[Hjörtur]

Thanks for dropping by, Glenn.

While online marketing isn't the best bet for all companies, I think most companies could get a better ROI by increasing their online spendings. Therefor I would recommend it in a downturn. But most of all, it has to be in sync what you do elsewhere.

Regarding CSR, I am pretty sure it will be very difficult to defend in a downturn. It's hard enough when things are going well. But if you choose matters that matter to your target group or employees, I think it's worth it. It's maybe not as pretty ethics as doing it just for the good of the reciever, but still ...

[Marc]

Great work. Excellent information. Really i loved it. By applying all this tactics i think i will definitely achieve my goal of getting a high traffic in internet marketing.

[Jeff Paul Internet Business]

I must say by this marketing tactics we can get alot of trffic on our site and its really very easy to bring traffic on your site that you just have to do blogging and do marketing of their site then its automatic generte traffic on your site.