On the Harvard Business School Blog Professor John Quelch provides the following tips for Marketing during tough times (http://hbswk.hbs.edu/item/5878.html):

1. Research the customer. Instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the recession. Price elasticity curves are changing. Consumers take more time searching for durable goods and negotiate harder at the point of sale. They are more willing to postpone purchases, trade down, or buy less. Must-have features of yesterday are today’s can-live-withouts. Trusted brands are especially valued and they can still launch new products successfully, but interest in new brands and new categories fades. Conspicuous consumption becomes less prevalent.

2. Focus on family values. When economic hard times loom, we tend to retreat to our village. Look for cozy hearth-and-home family scenes in advertising to replace images of extreme sports, adventure, and rugged individualism. Zany humor and appeals on the basis of fear are out. Greeting card sales, telephone use, and discretionary spending on home furnishings and home entertainment will hold up well, as uncertainty prompts us to stay at home but also stay connected with family and friends.

3. Maintain marketing spending. This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. Uncertain consumers need the reassurance of known brands, and more consumers at home watching television can deliver higher than expected audiences at lower cost-per-thousand impressions. Brands with deep pockets may be able to negotiate favorable advertising rates and lock them in for several years. If you have to cut marketing spending, try to maintain the frequency of advertisements by shifting from 30-second to 15-second advertisements, substituting radio for television advertising, or increasing the use of direct marketing, which gives more immediate sales impact.

4. Adjust product portfolios. Marketers must reforecast demand for each item in their product lines as consumers trade down to models that stress good value, such as cars with fewer options. Tough times favor multi-purpose goods over specialized products, and weaker items in product lines should be pruned. In grocery-products categories, good-quality own-brands gain at the expense of national brands. Industrial customers prefer to see products and services unbundled and priced separately. Gimmicks are out; reliability, durability, safety, and performance are in. New products, especially those that address the new consumer reality and thereby put pressure on competitors, should still be introduced, but advertising should stress superior price performance, not corporate image.

5. Support distributors. In uncertain times, no one wants to tie up working capital in excess inventories. Early-buy allowances, extended financing, and generous return policies motivate distributors to stock your full product line. This is particularly true with unproven new products. Be careful about expanding distribution to lower-priced channels; doing so can jeopardize existing relationships and your brand image. However, now may be the time to drop your weaker distributors and upgrade your sales force by recruiting those sacked by other companies.

6. Adjust pricing tactics. Customers will be shopping around for the best deals. You do not necessarily have to cut list prices, but you may need to offer more temporary price promotions, reduce thresholds for quantity discounts, extend credit to long-standing customers, and price smaller pack sizes more aggressively. In tough times, price cuts attract more consumer support than promotions such as sweepstakes and mail-in offers.

7. Stress market share. In all but a few technology categories where growth prospects are strong, companies are in a battle for market share and, in some cases, survival. Knowing your cost structure can ensure that any cuts or consolidation initiatives will save the most money with minimum customer impact. Companies such as Wal-Mart and Southwest Airlines, with strong positions and the most productive cost structures in their industries, can expect to gain market share. Other companies with healthy balance sheets can do so by acquiring weak competitors.

8. Emphasize core values. Although most companies are making employees redundant, chief executives can cement the loyalty of those who remain by assuring employees that the company has survived difficult times before, maintaining quality rather than cutting corners, and servicing existing customers rather than trying to be all things to all people. CEOs must spend more time with customers and employees. Economic recession can elevate the importance of the finance director’s balance sheet over the marketing manager’s income statement. Managing working capital can easily dominate managing customer relationships. CEOs must counter this. Successful companies do not abandon their marketing strategies in a recession; they adapt them.

Mar 22, 2010 1:39 PM, By Andrea Hribar–Chiefmarketer.com

There are many problems in the world. Some of them minor and temporary, like headaches, and some of them that seem almost impossible to resolve, such as global warming. Fortunately, there are usually multiple ideas available to help solve a single problem, although they may not necessarily be implemented. This theory holds true when we talk about marketing products and services.

To be successful, a product or service needs to solve a problem that is experienced by a large enough group of people (i.e. the target audience) to make it worthwhile (profitable) to develop it and sell it. If this is achieved by one organization, it is almost certain that competitors will try to gain some market share. Then it becomes a case of which solution is better, as determined by the customer base. May the best solution win.

Wake-up call to those who still don’t think its fair that they have to do something different to stay afloat. The world has changed. Don’t take our word for it, read:

http://sethgodin.typepad.com/seths_blog/2010/01/what-every-marketer-needs-to-learn-from-groucho-marx.html

Don’t be offended. Be inspired.

It’s easy to get disheartened when everything you do to persuade people to buy your product or service seems futile. However, there is a relatively easy fix when it comes to real or perceived lack of consumer motivation. Objectively examine what the payoff is that your product or service provides.

It’s simple, but not easy. If you can’t look at your own business/products/services objectively, a well-developed formal or informal customer or prospect survey can help you identify areas where you fall short.

The payoff your product or service provides doesn’t have to be fancy, but it does need to be relevant to your target audience. For example, the Tylenol brand of acetaminophen competes in a category full of generic and brand-name products, to differentiate beyond the basic payoff of pain relief, Tylenol promotes its effective yet stomach sensitive formula, plus the fact that it won’t interact with high blood pressure medication. These are important payoffs to older adults who are looking for a way to deal with the aches and pains associated with aging.

Once you identify the primary payoff for your customers, make sure you communicate it clearly, concisely, and consistently in your marketing and promotions.

Looking for a way to add relevance and credibility to your marketing message? Consider integrating some fact-based numbers into the equation.

Anecdotal endorsements and testimonials are good marketing tools, however, stating percentage improvements, number of product users, financial results, and other numerical facts in sales and fundraising copy can win over skeptics and solidify your persuasion by communication.

So next time you’re at a loss for convinicing copy, consider crunching some numbers instead.

As more of the world (including your target audience) embraces online media and spends more time exploring this ever-expanding frontier, it will become (and is becoming) necessary to determine how to remove barriers and direct the traffic trying to navigate it to relevant destinations.

For example, by now most of us in business have at least some presence online whether that be a website, a Facebook page, a Twitter Account, a discussion forum or a combination of many online venues that we hope our prospects, centers of influence, and customers find their way to. So how do we accomplish this? By directing the traffic using the proper infrastructure, signals and tools including search engine optimization, paid search, integrated directional mail and other media campaigns, linking to partners and relevant content, and by promoting our online addresses every chance we get.  

It’s time to take the orange construction barrels out of the way and create a clear path to our web-based properties.

 There are two keys to making an impact with a banner: first, the message on your banner should be simple and easy to read from a distance (similar to a headline you would use on a billboard), second, your banner needs to be placed prominently on your storefront, in your parking area, or on your lawn so passersby can view it immediately.

 Displays

When skillfully designed, displays can become a retailer’s (or any other business owner’s) best friend. Displays can incorporate anything from retractable banners, poster boards, to a branded point-of-purchase kiosk or backdrop. Displays can create excitement and interaction for your customers while differentiating your store from the competition.

 ”If you want to use a display to help spur sales, taking a little time to determine what you want to get out of your display, and how it will fit into your existing floor plan is a good idea,” says Jim Moore, Signage Specialist for Hamblin Signs & Design. Moore also  recommends portable displays, especially if you sponsor or exhibit at events away from your store. There are many lightweight, completely collapsible displays that can be carried from place to place in a convenient duffel bag.

 Sandwich Boards

When it comes to portability and message flexibility, the classic sandwich sign is hard to beat, especially when your objective is to pull potential customers in from the sidewalk to your store or restaurant. Look for a sturdy, A-frame construction (molded plastic withstands all kinds of weather) with large panels where new messages can be posted easily. Sandwich boards are also great for directional signage inside or outside at special events or on large properties such as school campuses, golf courses, and tradeshows.

 Wall Graphics

Have you always thought a mural would be a great attention-getter on one of your outside (or inside) walls, but commissioning a painter seemed too time-consuming or costly? Now there’s a great alternative that’s as easy as ordering a billboard!

 ”Weather-proof vinyl can now be applied to most outdoor surfaces to create the look of a mural without the expense, time-investment or uneven wear of a traditional painted one,” explains Jim Moore of Hamblin Signs & Design. “You simply select your design and it can be produced and installed within a few days.”

 Floor Graphics

Similar to wall graphics, you can add your marketing and sales message to the sidewalk outside your business and the floors inside your business space. You may have seen this approach in some malls and grocery stores.

 ”Because they are directly in the foot traffic stream, floor graphics can be extremely effective in capturing attention and motivating action,” Moore explains. “Also, floor graphics tend to be smaller in size, which makes them affordable for even the smallest business.”

 Table Top Signage

Many businesses overlook their merchandising racks, shelving and counter space when it comes to signage, however, these are prime locations for creative uses of smaller signs that can be relatively inexpensive.

 While they are cost-effective, Moore cautions against using handmade signs which can undermine the brand and professional image that your business and its employees work hard to cultivate. Instead, he suggests using a professional graphic designer to set up initial signage templates that support your visual brand, the text of which can then be modified in a simple desktop publishing program as needed. The sign can then be printed an slipped into a clear acrylic sign holder.

 In addition to some of the strategies outlined above, don’t forget to make sure your permanent signage is highly visible, attractive, and clean! Remember to check the sign ordinances for your area prior to posting any additional external signage, even if it’s temporary.

One mistake many entrepreneurs and small business owners make is channeling their advertising through one media rather multiple outlets. This type of logic appears to be based on the false premise that all people are internet savvy, read the same newspaper or listen to one radio station or watch one channel on television . This may have been true a hundred years ago, however, today’s fragmented media landscape  demands a more targeted marketing approach be taken.

Advertising research consistently confirms multi-channel advertising is more successful for most businesses regardless of size.  This is especially true when advertising is developed as part of a professionally prepared marketing plan. Depending on the type and size of the business, the channels selected will undoubtedly be different.

One business may select radio and newspaper channels for advertising their products or services. Another may determine the most effective channels are direct mail and online social media.  

Understanding the market(s) your business serves and the most effective channels available (within budget)  to reach these constituents will result in more effective advertising and, in turn a more robust business.  Anything less in business planning is likely to result in a steady decrease in lead generation and customer loyalty.