Keep your edge in tough times
With Marketing that Hits its Target
It's interesting that one of the first budget casualties in an economic downturn is often a company's advertising and marketing efforts.
While reducing expenses is certainly appropriate in a down cycle, it's also important to keep in mind that the nature of a cycle is to turn. Deep cuts in marketing and advertising often leave companies in a weak position when the economic picture improves. Marketing and advertising is essentially a capital investment, representing both present value and future returns. When done effectively, it enhances the value of the company and increases its assets. If eliminated, it does the opposite. Instead of cutting back your marketing, make it work harder and more effectively during this bear market. Here are a few timely strategies for making every marketing dollar count during lean times:
Keep your target in the cross hairs.
Bull markets tend to produce a lot of bull as we saw in the year 2000 where focus on brand awareness didn't stop the dot-com bust. If instead, you focused on your target market - you can get a good return on investment. The power of marketing lies in putting the right message in front of the right people at the right time. Utilizing online methods (Search Engine Marketing, Email Marketing, Social Media) or traditional advertising (Direct Mail, and Media Buying) will help you create greater cost efficiency than broad placement in front of a larger general audience.
Make your message a compelling value proposition.
When customers are spending less freely, you need to clearly state your competitive advantages and stick to the basics of providing the "Unique Selling Proposition" of your product. State the strongest reasons for choosing you over your competition, and then put that message in front of as many target people as you can afford. When times are tough, buyers are not motivated by strictly image-driven messages. Making a compelling case that you are the best value gives depth to your appeal.
Support your sales efforts.
It's easy to disconnect the cause and effect relationship that exists between marketing and sales during times of plenty, but a tougher marketplace demands a clear connection. In order to get the most return on your marketing budget, forget some of the "rules" about raising awareness and creating brand image. Instead, focus on influencing the consumer preference and purchase process. Marketing with this kind of discipline means higher quality leads for your sales team, lower acquisition costs, and a faster return on your marketing and advertising investment.
Utilize low-cost marketing channels.
Trade shows, run-of-schedule advertising, market coverage billboards, and even things like the sponsorship of a golf tournament need to be carefully examined for their real cost/benefit value. The money that goes into a single trade show booth placement might easily fund an ongoing email marketing effort. A full-page ad in a trade journal could pay for a targeted direct mail campaign. Wise selections of marketing channels can allow an existing budget to stretch farther, or keep you at the same level of effectiveness if your budget decreases.
For more ways to make your marketing pay off during lean times, contact IdeaBank. We always keep effectiveness at the forefront of our efforts.
