Get Tough!
As talk of economic recessionary doom and gloom swirls around our businesses and everywhere we turn companies are cutting back, laying off workers and downsizing it is at these times we need to learn the lessons business history has taught us.
Back in the great depression Proctor and Gamble marketed its “Ivory Soap” and made it a household staple dwarfing it’s rivals for decades afterwards. As the 1990’s recession griped the USA, computer-chip maker Intel launched it’s famous “Intel Inside” campaign featuring the multi-coloured hazard-suited dancing tech nerds pushing back it’s competitors and increasing its market share to the point where it dominates the entire sector today.
As marketers, we need to remind our CEO’s of these lessons and encourage them to go against the grain, Zig while other’s Zag, as Marty Neumeier author of ZAG teaches us and have the courage to invest in marketing rather than cutting it. Now is the time to break out those Superman tights boys and be a superhero.
The winners after this recession will be those companies that invested in marketing themselves, not those that ran away and hid.
Recessions provide many opportunities for those companies wise enough to look for them.
As your competitors retrench there is an opportunity to grab market share from their dozing marketing departments. Rather than cut back on advertising frequency reduce the size or duration of your ads. Take radio spots from 30’s to 15 seconds as an example.
Media is hurting too and there are deals to be had if you are brave enough to ask. Seek a better price for sure, but there is more than one way to skin this cat. Ask for two-for-ones, extend the campaign, up size your ads, or ask for space on/in sister stations or newspapers. Our media partners would rather keep your investment than loose it and if you are willing to commit they will sweeten the deal.
Invest in customer research so you understand how your customers buying habits are changing. Most are redefining their views of value and yesterdays “must haves” are becoming today’s “wish list”. They are looking for quality, value, reliability, durability, safety and performance. They are not looking for silly features, unnecessary luxury, unwanted add-ons, or gimmicks.
Customers are staying home and are looking for things that make this caccooning more appealing. Cookware, home entertainment and things that let them connect with family and friends at home will weather this recession better than most.
Look at your product lines. Pay special attention to those at the lower end of your pricing matrix. Customers are still buying; they are just buying less and looking for products their “redefined values” see as a good deal. Unbundle your offers and sell the pieces. Trusted brands will see their base solidify as customers cling to what they know and trust in uncertain seas.
Your advertising needs to adjust its messaging too with an emphasis being placed squarely on value for money, quality for price and performance vs. competitors offerings. Tell them WHY your product is the best. Be specific and mean it. If your customer service sucks, now is the time to fix it, as customers will be looking to do business with companies that stand behind what they sell.
The deal is KING! This does not mean you must put everything on sale and in fact I recommend you don’t. Instead, ensure that you have done your homework and know what your competitors pricing is. You do need to be in the same ballpark, and then make the case for your product by ADDING VALUE. Maybe a better warranty, free delivery or offering a Loyalty Program will ensure a sale without having to discount. Think about what impediments you place in front of a customer making a purchase from you and remove them. Get out from behind your desk and go talk to your customers, ask them what business challenges they face and see if you can provide a solution.
You think these solutions are only for the big players? Think again. I knew a florist who offered a free single white rose in every dozen red ones and had cards printed that read “In a Sea of Beauty You Stand Alone, Unique and Beautiful”. This clever marketer sold his roses at 20% more than his competitors based solely on this creative approach.
As my first mentor used to say, “When the going gets tough, the tough buy advertising.”
Back in the great depression Proctor and Gamble marketed its “Ivory Soap” and made it a household staple dwarfing it’s rivals for decades afterwards. As the 1990’s recession griped the USA, computer-chip maker Intel launched it’s famous “Intel Inside” campaign featuring the multi-coloured hazard-suited dancing tech nerds pushing back it’s competitors and increasing its market share to the point where it dominates the entire sector today.
As marketers, we need to remind our CEO’s of these lessons and encourage them to go against the grain, Zig while other’s Zag, as Marty Neumeier author of ZAG teaches us and have the courage to invest in marketing rather than cutting it. Now is the time to break out those Superman tights boys and be a superhero.
The winners after this recession will be those companies that invested in marketing themselves, not those that ran away and hid.
Recessions provide many opportunities for those companies wise enough to look for them.
As your competitors retrench there is an opportunity to grab market share from their dozing marketing departments. Rather than cut back on advertising frequency reduce the size or duration of your ads. Take radio spots from 30’s to 15 seconds as an example.
Media is hurting too and there are deals to be had if you are brave enough to ask. Seek a better price for sure, but there is more than one way to skin this cat. Ask for two-for-ones, extend the campaign, up size your ads, or ask for space on/in sister stations or newspapers. Our media partners would rather keep your investment than loose it and if you are willing to commit they will sweeten the deal.
Invest in customer research so you understand how your customers buying habits are changing. Most are redefining their views of value and yesterdays “must haves” are becoming today’s “wish list”. They are looking for quality, value, reliability, durability, safety and performance. They are not looking for silly features, unnecessary luxury, unwanted add-ons, or gimmicks.
Customers are staying home and are looking for things that make this caccooning more appealing. Cookware, home entertainment and things that let them connect with family and friends at home will weather this recession better than most.
Look at your product lines. Pay special attention to those at the lower end of your pricing matrix. Customers are still buying; they are just buying less and looking for products their “redefined values” see as a good deal. Unbundle your offers and sell the pieces. Trusted brands will see their base solidify as customers cling to what they know and trust in uncertain seas.
Your advertising needs to adjust its messaging too with an emphasis being placed squarely on value for money, quality for price and performance vs. competitors offerings. Tell them WHY your product is the best. Be specific and mean it. If your customer service sucks, now is the time to fix it, as customers will be looking to do business with companies that stand behind what they sell.
The deal is KING! This does not mean you must put everything on sale and in fact I recommend you don’t. Instead, ensure that you have done your homework and know what your competitors pricing is. You do need to be in the same ballpark, and then make the case for your product by ADDING VALUE. Maybe a better warranty, free delivery or offering a Loyalty Program will ensure a sale without having to discount. Think about what impediments you place in front of a customer making a purchase from you and remove them. Get out from behind your desk and go talk to your customers, ask them what business challenges they face and see if you can provide a solution.
You think these solutions are only for the big players? Think again. I knew a florist who offered a free single white rose in every dozen red ones and had cards printed that read “In a Sea of Beauty You Stand Alone, Unique and Beautiful”. This clever marketer sold his roses at 20% more than his competitors based solely on this creative approach.
As my first mentor used to say, “When the going gets tough, the tough buy advertising.”
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